New Delhi: The government is expected to attract the sugar export subsidies from the new season in early October because the sharp rise in global prices makes it easier to sell sweeteners in the world market, the government said on Tuesday.
“The government does not consider subsidies at this time for next year,” Sudhanshu Pandey, the most senior civil servants at the Ministry of Consumer Affairs, Food and Public Distribution, told Reuters in an interview.
“In the current state, as we see the scenario, it does not seem to need subsidized support.
If exports can occur alone, then it is also better for the global market provided,” he said.
India, the largest sugar producer in the world after Brazil, gave foreign sales incentives for three consecutive years, helping New Delhi emerged as a significant and stable commodity exporter.
Competition Suppliers often oppose Indian sugar export subsidies.
After protests from Brazil, Australia, and Guatemala, the World Trade Organization (WTO) in 2019 decided to regulate the panel to rule complaints against Indian export subsidies for sugar.
India has stated that its main subsidy does not violate the WTO rules.
“Indian sugar demand will be higher, so the price (global) is expected to compile.
Maybe there are no subsidy requirements,” Pandey said.
On Tuesday, the benchmark for raw sugar prices in New York rose to a new 4-half year high, supported by purchasing funds against the background of tightening supplies.
Brazil 2021-22 Center-South (CS) Sugar production is expected to drop to 32.5 million tons from the estimate of June 34.1 million tons due to drought and frost of the sugar cane plants, according to Czarnikow food traders.
Mourning the increase in sugar prices, Indian traders for the first time have signed a five-month export contract ahead of shipment as a possibility of a decline in Brazilian production encourage buyers to get supplies in advance.
The Indian factory has been contracted to export around 725,000 tons of raw sugar and 75,000 tons of white sugar for delivery from November to January.
“The demand for foreign countries is very good because Brazil’s production is revised down.
We can export 6 million tons in the following season,” said Prakash to Increases, Managing Director of National Federation of Cooperatives Factory Sugar Ltd.
This year until September 30, 2021, India will export a record of 8.1 million tons of sugar, thanks to subsidies to increase overseas sales.
Over the past years, higher sugar production has hammered local prices, hitting financial health factories and making it difficult for sugar barons to make payments on time to sugar cane farmers.