Wednesday, April 16, 2014


Refer my article on raw sugar export subsidy in Financial Express of 15.03.2014 ( and Indian Sugar Mills Association (ISMA’s) comments of 19.03.2014.

Detailed to ISMA are given in my blog

(Preliminary comments to the objectivity of any export subsidy were given in my blog with link    )

1.     As per media reports of “Times of India” and “Business Line of 15.04.2014”, captured here, following can be inferred—that

2.     WTO is seeking an answer from Indian administration -- Is this subsidy of Rs 3300/tons WTO compliant?  But Government is evading the issue of WTO compliance. Surprisingly, response is vague --- that small volume of Indian raws will not affect world sugar prices.

3.     In less than a month Indian white sugar prices have moved up by Rs 4000/mt ($66)
was this subsidy really required??

4.        Times of India reports  that Subsidy, renamed as marketing expenses, was given under pressure from "powerful sugar mills" before the elections. In April 2013, Government deregulated  sugar sector completely.  Gifting funds out of Sugar Development Funds after-- one year of deregulation-- is inappropriate when the sweetener and its by products are freely marketable.

5.     As the reuters link shows , sugar trade is in profit. Will the industry share profits with Government?

6..Arrears of farmers still remain unpaid.

what is wronged cannot be justified !!


TIMES OF INDIA 15.04 2014


BUSINESS LINE 15.04.2014

No comments:

Post a Comment