The government has decided to keep raw sugar export subsidy at
Rs 3,300 a ton for Apr-May, Food Minister K.V. Thomas said.
"A notification on this will be issued soon," the minister said.
The Cabinet Committee on Economic Affairs had in February approved a
subsidy of Rs 3,300 a tn on export of raw sugar till end March to bail out
the cash-strapped sugar industry.
It had said the subsidy would be given on export of 4 mln tn raw sugar
over a period of two years, and the quantum of subsidy would be
re-calculated periodically based on the dollar-rupee rate.
Raw sugar exports under the subsidy have been limited due to a rise in
domestic sugar prices.
According to government sources, Directorate General of Foreign Trade has
registered export of around 250,000 tn sugar since Feb 28, when the export
subsidy was notified.
The food ministry, however, is yet to get any subsidy claims.