New Delhi: According to the trade and industry officials, the favourable global situation and flurry of overseas sales in the past few months will help India to export 5 million tonnes sugar in 2019-20 season that began in October.
As per the media reports, the mills have already signed export contracts of 2 million tonnes of sugar.
“Looking at the current trend, I can tell you with a lot of confidence that we’ll be able to export at least 5 mt this year,” New Delhi-based dealer from the Indian unit of a global trading firm was quoted as saying by news agency Reuters.
According to past data, India may break the record of sugar export of 4.96 million tonnes in the year 2007-08.
To reduce the sugar surplus, the government announced 60 lakh tonnes of sugar export subsidy for 2019-20 sugar season. The policy involves an export subsidy of Rs 10,448 per metric tonne (mt) to sugar mills. The total estimated expenditure government will bear Rs 6,268 crore.
The Indian sugar sector is suffering from various hurdles from the last two to three years, and to bring the sector out of the crisis, the government had introduced various measures, including sugar export subsidy. Sugar surplus in the country causing harm to the sector, so the shipments will be helpful in reducing the sugar glut in India.
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