Sugar Subsidy

The National Federation of Co-operative Sugar Factories (NFCSF) on Friday warned of an impending crisis in the sugar sector and urged the government to take immediate steps to prevent its collapse. In a letter addressed to the Union Food Secretary, the federation has highlighted the sector's severe financial stress due to mounting sugar stocks and escalating production costs. According to NFCSF, opening stocks for the 2024-25 season (October-September) stand at 80 lakh tonnes, with projected production of 325 lakh tonnes, excluding ethanol diversion. With domestic consumption estimated at 290 lakh tonnes, around 115 lakh tonnes of sugar will remain in godowns of 535 factories nationwide. The federation pointed out that while the government has increased the Fair and Remunerative Price (FRP) by 8 per cent to Rs 3,400 per tonne for 2024-25, the industry's Minimum Selling Price (MSP) has remained stagnant at Rs 31 per kg since 2018-19, despite production costs rising to Rs 41.66 per ..

A group of WTO member countries, including Brazil, Canada and the European Union, have urged India to submit timely notifications on sugar subsidies in the World Trade Organisation, an official said. The issue came up for discussion during the meeting of the WTO's agriculture committee on May 23-24 in Geneva. These countries are also major sugar exporters like India and they allege that support measures by India distort global sugar trade. Brazil, Canada, Costa Rica, Paraguay, New Zealand, the EU, and Guatemala have "urged India to submit timely notifications on the subsidies", the Geneva-based official said. India has stated that the Indian central and state governments neither paid for nor procured sugarcane from farmers, as all purchases were made by private sugar mills, hence, this information was not included in its notifications of domestic support. The discussion assumes significance as in 2022, India has appealed against a ruling of the World Trade Organization's (WTO) tra

Over 99 per cent sugar cane dues to farmers in the country have been cleared by mills which amounts to over Rs 1.14 lakh crore out of the Rs 1.15 lakh crore outstanding, Union Minister Piyush Goyal said in the Lok Sabha on Wednesday. He also said that now only Rs 516 crore outstanding is due with regards to three sugar mills in Uttar Pradesh against whom action is being taken. Goyal, Union Minister of Commerce, Industry, Consumer Affairs and food, said in 2013-14, Rs 57,000 crore had been given to farmers as sugar cane price. Cane price dues used to be given to farmers after two-three years. However, in 2022-23, cane production increased by one-and-a-half times and cane dues stood at Rs 1,15,000 crore. "Of this, Rs 1,14,000 crore has been paid to farmers on time which is more than 99 per cent," he said, inviting a sharp response from some opposition members who claimed the figures were not correct. The minister said productivity of the mills has increased, cooperative mills have .

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SATARA/SANGLI/SOLAPUR, India (Reuters) - Sugarcane growers in India's top producing states are worried scanty rainfall during the crop's crucial growth period could trim yields and reduce sugar output in the upcoming season, farmers and industry sources told Reuters.

Lower sugar output from India, the world's biggest producer of the sweetener, will leave hardly any surplus for additional exports during the current 2022/23 season

India is not looking at allowing more sugar exports, government and industry officials said on Thursday

The appeal was filed by India in the WTO's Appellate Body, which is the final authority on such trade disputes

In the cases brought before the WTO in 2019, the rival producers alleged that India had broken WTO rules by providing excessive domestic support and export subsidies for sugar and sugarcane

In its response to WTO members over the concerns, India said the support given was largely to small and marginal farmers and was in accordance with its commitments at the trade body

The Centre has so far cleared Rs 1,800 crore in subsidy to sugar mills for undertaking a mandated export of 6 million tonnes of the sweetener in the 2020-21 season-ending this month

India, the world's biggest sugar producer after Brazil, incentivised overseas sales for three years in a row, helping New Delhi emerge as a significant, stable exporter of the commodity.

The combined market capitalisation (m-cap) of the country's top 15 sugar manufacturers was down 2.8 per cent on average on Friday

The government reduced the export subsidy from Rs 5.85 / kg to Rs 4.0 / kg on any sugar contracted for export on or after May 20, 2021

Trade sources said it might not impact exports much; of the existing quota of 6 million tonnes, 5.7 million tonnes have already been contracted at higher subsidy rate

Balrampur Chini, Triveni Engineering, Uttam Sugar Mills, Dhampur Sugar Mills, Shree Renuka Sugars, EID Parry and Dwarikesh Sugar Industries were up in the range of 3% to 5%

Sugarcane farmers to get the amount directly into their bank accounts

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The decision will benefit 5 crore farmers, said Javadekar, who is also union environment minister

India is the world's biggest consumer of sugar, but as the second biggest producer, produces more than required.