Sugar export incentives not to benefit mills due to sharp decline in prices

The government’s decision to flush out some extra quantity of sugar into the world market is unlikely to benefit Indian mills due to a sharp decline in global sugar prices.

The government in two separate notifications on Wednesday allowed sugar mills to export up to 2 million tonnes of sugar till September 2018 under the Duty-Free Import Authorisation (DFIA). Also, mills have been approved Minimum Indicative Export Quota (MIEQ) to import raw sugar between October 2019 and September 2021 equal to the quantity of export in the next six months. The quantity of allocation to sugar mills is tradable which