NEW DELHI: The authorities has prolonged the deadline for exporting sugar from current shares by three months to December to assist business reap the benefits of the worldwide provide disruption due to the pandemic, and clear cane dues of farmers.
In the 2019-20 sugar season which ends this month millers have contracted 5.7 million tonnes of sugar, near the goal of 6 million tonnes.
Every 12 months, the federal government fixes mill smart quota for export below the Maximum Admissible Export Quantity (MAEQ).
“It has been decided that those sugar mills, which have partially exported their MAEQ quota of sugar season 2019-20 till the end of this month, will be allowed to export the balance quantity of their quota till the end of this calendar year,” mentioned a senior meals ministry official.
He mentioned that the choice will assist enhance liquidity of sugar mills which can allow them to pay cane arrears to farmers. The authorities gives help of Rs 10,448 per tonne to sugar mills for exports.
“Cane arrears have mounted your Rs 13,000 crore. Exports will help millers clear their dues,” he mentioned.
The official mentioned that there’s nice demand of sugar within the world market because of provide disruption amid Covid-19.
“There is drought in Thailand. So countries like Indonesia and Malaysia which import from Thailand have turned to India. We expect to meet our target of 6 million tonnes due to extension of time limit as there are orders in global market,” the official mentioned.
The authorities has additionally prolong the declare submission deadline to 180 days.
“The claim for each tranche should be be submitted within 180 days from the date of issue of the last bill. Delayed submission up to 270 days would be allowed but would attract a penalty of 10% of the admissible amount. Beyond that no bill would be entertained,” the official mentioned.
Praful Vithalani, chairman, All India Sugar Trade Association mentioned that the extension in time interval will assist sugar mills to utterly export of remaining three lakh tonnes of sugar.
“Till September we expect to ship around 5.7 million tonnes of sugar. So far 5.5 million tonnes have already been despatched. In the extended three months, we will export 3 lakh tonnes easily,” he mentioned.