- Problems plaguing the Sugar industry in India:
- Higher cost of production.
- Lower selling prices as a result of surplus output.
- Sugarcane arrears of upto Rs. 11,000 crore.
- Domestic prices falling below the cost of production costing the industry its profits.
- Measures introduced by the Central govt to help the Sugar industry. These are estimated to contain production to 23.8 million tones in comparison to the 25.1 million tonnes last year:
- Removing the cap of 10,000 tonnes on organic sugar exports till the time export of sugar is permitted freely.
- The export is however subject to the registration of quantity with the Directorate General of Foreign Trade (DGFT) and certification by the Agricultural and Processed Food Products Export Development Authority (APEDA).
- Allowing export of 8,100 tonnes of raw sugar to the US under the tariff rate quota (TRF).
- TRF is a quota for a volume of exports entering the US at relatively low tariffs. Once the volume exceeds, a higher tariff is applied on the imports.
- Provision of additional free loan of up to Rs.4,400 crore for paying arrears.
- Removing the cap of 10,000 tonnes on organic sugar exports till the time export of sugar is permitted freely.
- Read at: http://www.thehindu.com/todays-paper/tp-business/quantitative-ceiling-on-organic-sugar-exports-lifted/article6181660.ece
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