Central govt announces guidelines to review sugar export performance of sugar mills during sugar season 2019-2020

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New Delhi: The Central Government, with a view to facilitate export of sugar during the sugar season 2019-20 and to improve the liquidity position of sugar mills and thereby enabling them to clear cane price dues of farmers for sugar season 2019-20, has notified on 12.09.2019 a Scheme for providing assistance to sugar mills for expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of sugar.

The Department vide order dated 16.09.2019, has allocated mill-wise MAEQ of 60 Lakh MT of sugar for export during the current sugar season 2019-20. Pursuant to Clause 10 of the said Notification, it has been decided that henceforth, DFPD will review the performance of sugar mills on a quarterly basis during the sugar season 2019-20 and revise the allocated mill-wise MAEQ.

The first such review will be done on the basis of report sought vide this Department’s letter No. 1(l4)/2019-SP.I dated 16.12.2019.

In order to re-assess the export performance of the sugar mills, the mills would be required to submit a quarterly report in the enclosed proforma. However DFPD may, if required, seek additional information from time to time. 5. For the purpose of revision of mill-wise MAEQ, the following methodology would be adopted by DFPD:

i) In the first instance, based on the reports furnished by sugar mills in terms of Para-4 above, the MAEQ voluntarily relinquished by the sugar mills, would be re-distributed amongst those sugar mills which have already contracted at least 75% quantity of their initial MAEQ and has lifted 25% of their MAEQ for export and have requested for more quantity.

ii) Thereafter, the sugar mills which have not even contracted 25% quantity of their MAEQ by 31.01.2020, 20% of their MAEQ would be deducted from their quota and the same woould be re-allocated amongst those sugar mills which have fulfilled the criteria given in para 5(i) above and have requested for more quantity.

iii) Review of export performance of sugar mills would be again done by DFPD in the first week of April, 2020. In respect of those sugar mills which have not contracted any quantity for export till 31.03.2020, 40% of their MAEQ may be deducted and be redistributed amongst those sugar mills which have contracted 100% of their MAEQ and have lifted 50% of their MAEQ for export by 31.03.2020 and which have requested for more quantity.

iv) Further review of export performance of sugar mills may be done by DFPD in the first week of July, 2020. In respect of those sugar mills which have not contracted any quantity for export till 30.06.2020, 75% of their MAEQ would be deducted and be redistributed amongst those sugar mills which have contracted 100% of their MAEQ and have also lifted 100% of their MAEQ for export by 30.06.2020 and which have requested for more quantity.

v) In order to encourage the export of sugar, if necessary, DFPD may further assess the export performance of sugar mills and re-allocate the un-exported quantity amongst the sugar mills, which have requested for additional quantity.

vi) Redistribution of quota among sugar mills which are willing to export beyond their MAEQ would be done on pro-rata basis to their MAEQ, subject to a maximum ceiling limit of the quantity requested by them.

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