India, the world’s biggest sugar producer after Brazil, will introduce a subsidy on raw sweetener exports to boost shipments amid a domestic glut, a government official said.
The cabinet approved a 3,333 rupees ($54) a metric ton subsidy for exports in February and March and will review the amount in April, the official, who asked not to be named because the person isn’t authorized to speak to the media, said in New Delhi yesterday after the cabinet meeting. That’s 67 percent more than the 2,000 rupees previously proposed by the Food Ministry. India will subsidize as much as 4 million tons in the next two years, the official said.
Bajaj Hindusthan Ltd., Balrampur Chini Mills Ltd. (BRCM) and other mills are counting on government support to increase shipments and trim record losses as cane costs climb and prices drop. The subsidy will help spur exports from India and help the country compete with supplies from Thailand, Michael McDougall, a senior vice president at Newedge Group in New York, said by phone yesterday. Refineries including Dubai-based Al Khaleej Sugar Co. will benefit from Indian supplies, he said.
via India Approves Paying $54-a-Ton Subsidy for Raw Sugar Exports – Businessweek.
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