The Centre issued a notification recently relaxing sugar exports norms. Sugar exports were subject to a subsidy of Rs 55 per tonne of sugar cane payable to cane farmers. However, in the earlier notification, the Ministry of Consumer Affairs had linked the compliance of all past conditions by mills to avail subsidy on exports.
In February and March last year, mills violated the sugar stock limit and sold more sugar in the market than they were supposed to. They did this to generate cash before the year end. However, private sugar mills that violated this have become ineligible for subsidy.
The Government recently said in a notification that export subsidy will be given to mills who have complied with all orders till 17-18 but the stock limit order for February and March 2018 was not included. This exemption makes several mills, mostly in the private sector, eligible for export subsidy.