Wait...
  1. Home >
  2. Export Import News >
  3. Foreign Exchange >
  4. Maharashtra sugar millers seek concessions from PSBs, DCBs to push export >
  5. Maharashtra sugar millers seek concessions from PSBs, DCBs to push export

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Maharashtra sugar millers seek concessions from PSBs, DCBs to push export.


Date: 24-01-2019
Subject: Maharashtra sugar millers seek concessions from PSBs, DCBs to push export
The sugar sector stakeholders in Maharashtra have urged the Centre to take action against millers who do not export despite the quota sanction in order to prevent stockpiling of inventory. Accordingly, the sugar millers of the state have called for removal of hurdles so that the factories can export more sugar. Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) has urged district urban cooperative banks and public sector banks to follow the same model adopted by the Maharashtra State Cooperative Bank (MSC) to enable more exports.

MSC Bank has recently agreed to extend a short-term loan to millers to help them bridge the gap arising out of the valuations made by the bank and prevailing market prices. Until now, the bank was not willing to release sugar pledged with the bank unless the millers had paid up the difference or short margins arising because of the difference in rates. The move of MSC Bank will directly help 51 sugar mills. Another 51 mills who have borrowed from district cooperative banks will also be eligible for similar loans from MSC Bank to export sugar. If other banks follow suit, several other millers can also export and fulfil the quota given by the Centre, Jayprakash Dandegaonkar, chairman of the federation said.

The Centre has given a quota of 50 lakh tonne for export for 2018-19. Of this, Maharashtra’s quota is around 15.58 lakh tonne.Millers, however, are facing a ‘short’ margins issue because of the difference in the international market and the sugar valuations done by banks. MSC Bank was not willing to release the pledged sugar unless the banks paid up the differential. Maharashtra has signed contracts for 1.84 lakh tonne and physical delivery of some 1.06 lakh tonne is completed, Dandegaonkar added.

The deadlock between the mills and banks continued until last week, when state central co-operative lenders agreed to sanction additional loan to collect subsidy amount from banks. District central banks and PSBs continued to seek subsidy amount from mills for releasing the sugar quantity held as collateral.
Sanjay Khatal, MD of the federation said that they have approached the finance ministry urging it to issue a guidance to the Reserve Bank of India (RBI) to direct PSBs to adopt the same model as state co-operative banks.

“We have also approached district central co-operative banks seeking release of the pledged sugar to boost exports,” he said. The state co-operative banks have agreed to release additional credit to sugar factories at 14 % interest for a one-year repayment tenure. This will help mills bridge the price differential of `1,100 per quintal for increasing exports. Once district co-operative banks adopt the guidelines of state co-operative banks, the problems of some 102 mills will be resolved, and they will cumulatively be able to export another 900,000 tonne. However, another 84 sugar mills that have pledged their inventory with PSBs continue to face problems.

The country’s sugar sector is in distress, thanks to excess production which has led to a decline in prices. This, in turn, has led to factories not being able to pay up the fair and remunerative price ( FRP) to farmers, causing unrest among the farming community. Despite the solutions suggested by MSC Bank, several factories are still unwilling to export because there are no penal strictures to be taken against the factories and the PMO has been informed accordingly, industry people revealed. As per the Cane Control Act 1966, there is a provision whereby the sugar can be seized by the government.

Khatal had recently attended a meeting with the state chief secretary after the PMO sought answers from the state on exports. He said that he had given a clear picture to the government on the issue and had stated that unless other banks in the state do not follow the same policy adopted by MSC Bank, exports would not increase.

Maharashtra currently exports to Bangladesh, Sri Lanka, Malaysia. A high profile Chinese delegation had recently visited India to seek sugar. China, however, is yet to declare its import quotas.

As on January 15, sugar factories have paid `5166.99 crore to farmers while the arrears are around `5320.36 crore, senior officials at the sugar commissionerate said. The total payable FRP, as on January 15, was `10487.34 crore. According to officials, around 426.84 lakh tonne of cane was crushed until January 15. Factories have made around 49% of the FRP payment, officials said.

Source: financialexpress.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 22-10-2019
TRADE NOTICE NO. 37/2019-20
Mis - declaration of imported goods under 'Others' category of ITC (HS), 2017, Schedule-I (Import Policy)-reg.

Date: 18-10-2019
Notification No. 77/2019- Customs (N.T.)
Road from Nongjri (Barapunji), East Khasi Hills District, Meghalaya, to Kalairag (Bangladesh) between BP No. 1251/11-S-12-S

Date: 18-10-2019
Notification No.25/2015-2020
Incorporation of new provision in the Foreign Trade Policy 2015-20 about cases referred to National Company Law Tribunal (NCLT).

Date: 18-10-2019
PUBLIC NOTICE NO. 39/2015-2020
Incorporation of new provision in the Handbook of Procedure 2015-20 about cases referred to National Company Law Tribunal (NCLT).

Date: 17-10-2019
Notification No.76/2019 - Customs (N.T.)
Exchange Rates Notification No.76/2019-Custom (NT) dated 17.10.2019

Date: 16-10-2019
Notification No. 57/2019-Customs (N.T./CAA/DRI)
Appointment of CAA by DGRI - reg.

Date: 15-10-2019
Notification No. 75/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg

Date: 15-10-2019
NOTIFICATION No. 40/2019-CUSTOMS (ADD)
Seeks to impose anti-dumping duty on imports of Flat rolled product of steel, plated or coated with alloy of Aluminium and Zinc originating in, or exported from China PR, Vietnam and Korea RP.

Date: 14-10-2019
Notification No. 56/2019-Customs (N.T./CAA/DRI)
Appointment of CAA by DGRI - reg.

Date: 11-10-2019
No. 04/2019- Customs
Clarification regarding inclusion of cesses, surcharge, duties, etc. levied and collected under legislations other than Customs Act, 1962, Customs Tariff Act, 1975 or Central Excise Act, 1944 in Brand Rate of duty drawback



Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001