Approval to Sugar export policy -season 2019-20

Question: Approximately how much export subsidy per Metric Tonne (MT) to sugar mills for the sugar season 2019-20 is being provided by the Central Government under the recently approved Sugar Export Policy?
(a) Rs. 10,448
(b) Rs. 6600
(c) Rs. 8800
(d) Rs. 9400
Answer: (a)
Related facts:

  • Approval was given to sugar export policy for evacuation of surplus stocks during sugar season 2019-20.
  • This has been done for providing a lump sum export subsidy at Rs. 10,448 per Metric Tonne (MT) to sugar mills for the sugar season 2019-20.
  • The total estimated expenditure of about Rs.6,268 crore will be incurred for this purpose.
  • The lump sum export subsidy will be provided for the following expenses:
  • On marketing costs including handling, upgrading and other processing costs.
  • Costs of international and internal transport.
  • Freight charges on export of up to 60 Lakh Metric Tonne (LMT) of sugar limited to Maximum Admissible Export Quantity (MAEQ) allocated to sugar mills for the sugar season 2019-20.
  • The subsidy would be directly credited into farmers’ account on behalf of mills against cane price dues and subsequent balance, if any, would be credited to mill’s account.
  • The subsidy shall be in conformity with the provisions of Article 9.1 (d) & (e) of Agreement on Agriculture (AoA) and thus WTO compatible.


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