Refer my article on raw sugar export subsidy in Financial Express of 15.03.2014 (http://epaper.financialexpress.com/c/2558269 and Indian Sugar Mills Association (ISMA’s) comments http://epaper.financialexpress.com/c/2575215 of 19.03.2014.
(Preliminary comments to the objectivity of any export subsidy were given in my blog with link
http://tpsnarang.blogspot.in/2014/02/subsidy-for-exporting-indian-sugar.html )
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) http://in.reuters.com/article/2014/04/14/india-sugar-election-idINDEEA3D04F20140414
was this subsidy really required??
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 !!
.
6..Arrears of farmers still remain unpaid.
what is wronged cannot be justified !!
.
BUSINESS LINE 15.04.2014
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