The sugar industry is not excited about the sops announced by the Central government for exports.
According to news agency reports, a section of sugar industry has expressed dissatisfaction over the government's export incentives, saying a Rs 100 per tonne extra subsidy for mills in northern region as compared to those for coastal areas was not enough.
Freight difference between non-coastal and coastal states is Rs 500-600 per tonne, while the government is giving only Rs 100 extra subsidy for mills in the north, office-bearers of an industry body said.
The government should either have provided for the actual difference in freight cost or kept a single rate for all sugar factories in the country, the industry body said.
Union Agriculture Minister Sharad Pawar had on March 27 announced that the Centre would give a subsidy on transport cost of shipments.
The mills in Uttar Pradesh have the option to export through Kandla and Mundra ports, which will cost them Rs 900-1000 per tonne as freight while factories in coastal areas will have to bear Rs 300-400 a tonne.
