The Central government’s decision to slash the sugar export subsidy won’t impact the sugar exports, said B B Mehta, Wholetime Director at Dalmia Bharat Sugar.
The Centre has on May 20, 2021 reduced the sugar export subsidy from Rs 6,000/tonne to Rs 4,000/tonne for the allocated quota of 6 million tonne export for the ongoing season that ends on September 30.
According to the news report published in cnbctv18.com, BB Mehta said, “As far as we are concerned, it will not have any impact on our performance. If you see, the notification for reduction of the subsidy, it is to do with the contracts which have been entered into after the date of notification. We have entered into all our contracts before the notification. So we will not have any impact on our results.”
“The government decision will not impact our performance as we have entered into all our contracts before the notification. The reduction of subsidy is applicable to the contracts which have been entered into after the date of issuance of notification,” he said.
“We will be exporting around 1.65 lakh tonne sugar and about 1 lakh tonne out of this will be shipped this year,” he said.
According to the news agency Reuters, sugar export from India could rise by 14 per cent in 2020-21 season compared with the previous season as Indian mills have started signing sugar export deals without assistance from government subsidy.
India in mid-December had approved an export subsidy to help cash-strapped sugar mills to export 6 million tonnes of sugar in the 2020/21 season.