| Date: |
29-04-2015 |
| Subject: |
Sugar industry opposes export quota liberalisation |
The Commerce ministry’s decision to open up sugar exports to the European Union and the US under preferential quotas to non-State Trading Enterprises (STE) has attracted opposition from the sugar industry, which claims the move will only benefit “a few petty traders”.
India has an annual preferential quota for export of 10,000 tonnes of white sugar to the EU and 8,424 tonnes of raw sugar (equivalent to 8,100 tonnes of whites) to the US. These shipments are not subject to any import duties, which otherwise amount to 419 euro per tonne in the EU and $ 357 per tonne in the US. Being duty-free makes such preferential quota exports a profitable proposition.
Till recently, the Indian Sugar Exim Corporation (ISEC) — a joint body of the Indian Sugar Mills Association (ISMA) and the National Federation of Cooperative Sugar Factories — was the sole agency nominated as the STE for exporting the preferential quota to the EU and US. But on April 20, the Commerce Ministry issued a notification bringing these exports under the “free” as opposed to the “STE” regime.
“The change in the policy of the preferential sugar quota will enable all sugar industries in the country to export sugar subject to a minimal requirement of registration from APEDA (Agricultural Products Export Development Authority or DGFT (Directorate General of Foreign Trade)”, the commerce ministry said.
ISEC has cried foul over “unilateral decision”, saying that neither the industry nor Food Ministry was consulted. “The profits from these exports are meant to be ploughed back for welfare of sugar sector and not diverted for personal benefit of petty traders. Hence, preferential quota exports are being channelised STE, which in this case is a body owned by the industry”, DG of ISMA, Abinash Verma told The Indian Express.
‘To benefit only a few petty traders’
Till recently, the Indian Sugar Exim Corporation— a joint body of Indian Sugar Mills Association and the National Federation of Cooperative Sugar Factories — was the sole agency nominated as the STE for exporting the preferential quota to the EU and US.
Source : indianexpress.com
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