Mumbai: Soon after the news emerged that India will keep its sugar export subsidiess, sugar stocks on July 16 climbed higher.
Following the Indian sugar subsidies, Brazil, along with Australia, knocked the World Trade Organisation’s (WTO) door to get respite. They asked WTO to form a panel to resolve their sugar dispute. According to the reports, without getting affected by the rival complaints, India is likely to continue sugar export subsidies, but it will modify how it provides them.
Till 10.10 am, shares of Uttam Sugar Mills rose 15 per cent to Rs 137, Triveni Engineering gained 2.98 per cent, while Balrampur Chini Mills surged 3.81 per cent. Mawana Sugars rallied 4.76 per cent and Avadh Sugar witness hike of 4.54 per cent.
Following the record sugar production, the sugar sector is reeling under the pressure of excess sugar; therefore, export believes there is a dire need for export. As Indian sugar Industry is suffering from various hurdles from last two to three years, and to bring the sector out of the crisis, the government had introduced various measures like soft loan scheme, hike in minimum selling price, scrapping of export duty, 100 per cent rise in import duty, and others.
According to the reports, India’s exports rose to 3.3 MMT from 620,000 tonnes a year earlier. Which has prompted the rival countries to lodge complain at WTO stating India’s sugar subsidies are inconsistent with global trade rules and distorting the sugar market.
The government is mulling over framing new sugar export policy to reduce surplus and address the concerns of the beleaguered sugar industry.
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