With a view to facilitate export of sugar during the Sugar Season 19-20 the Department of Food & Public Distribution has been announcing various schemes. For the sugar season 2018-19 the Government of India announced the MIEQ export policy, whereas, for the sugar season 2019-20 the Government announced the MAEQ policy.
The below table exhibits the difference between the policy of Sugar Season 2018-19 and policy of Sugar Season 2019-20
| Policy Changes | 2018-2019 – MIEQ | 2019-2020 – MAEQ |
| Policy Background | Production based assistance (138.8/Qntl x 300 million) |
Marketing Assistance |
| Characteristic of Quota | Minimum Indicative Export Quota | Maximum Admissible Export Quota |
| Quantity in LMT | 5,000,000 | 6,000,000 |
| Expected sugar to be exported against per tonne cane crushed |
16.74 kg | 24 kg |
| Cane crushed | 3018.01 LMT | 2500 LMT (expected) |
| Sugar Production | 330 LMT | 275 LMT (expected) |
| Eligibility | ||
| Minimum Quantity of Export | 100% | 50% |
| Ethanol Quantity Supply (Contract with OMC) | 80% | Not linked |
| Compliance of Govt. directives (Reserve Quota, Buffer Stock, MSP, etc.) & certificate of the same from the state Goverment. |
100% | Not linked |
| Atleast 27% of FRP payment by December 2018 | Yes | Not linked |
| Quota | Transferable | Transferable |
| Extent of Assistance | Reimbursement against invoice | Lumpsum payment against Proforma A and Declaration |
| Financial Assistance: | ||
| a) Production Subsidy | 8300 (approx) | – |
| b) Transport Subsidy for coastal based region | 2500 | 3428 |
| c) Transport Subsidy for Non coastal based region | 3000 | 3428 |
| d) Ocean Freight | – | 2620 |
| e) Marketing, Handling, Quality Upgradation etc | – | 4400 |
| Total Assistance for COASTAL MILLS | 10,800 | 10,448 |
| Total Assistance for NON COASTAL MILLS | 11,300 | 10,448 |
| Through land Custom – Nepal, Bhutan , SEZ | 10,826 | 7,828 |
| Documents Needed | ||
| Bank Realization Certificate | At the time of submitting documents to avail subsidy |
Can submit 120 days later after Release of Assiatnce to claim subsidy |
| Claim Settlement | Single claim | First tranche 50% of MAEQ followed by mutilple tranches |
| Withdrawal of scheme | DFPD can withdraw scheme | DFPD can withdraw scheme |
| Claim Submission | Within 90 Days of Date of Last BRC | Within 90 days of date of Last BL |
| Reallocation of quota of Non performing mills | Not applicable | Govt to review it every Quarter and redistribute the quota of Non Performing mills to Performing mills |
Click here to view the notification – Indian Sugar Export Policy 2019-20
