Scheme for providing assistance to sugar mills for expenses on marketing costs including handling and upgrading

Sep 13, 2019 | by Avantis RegTech Legal Research Team

The Ministry of Consumer Affairs, Food and Public Distribution on September 12, 2019, notifies the scheme for providing assistance to sugar mills for expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of sugar to facilitate export of sugar during the sugar season 2019-20 (October 01, 2019 to September 30, 2020). The funds to be provided as assistance to facilitate export should be used for payment of cane price dues of farmers for the sugar season 2019-20 and cane price arrears of previous sugar seasons.


 The sugar mills should have exported sugar up to the extent of their Maximum Admissible Export Quantity (MAEQ) determined by the Central Government for such mills for the sugar season 2019-20.

 This assistance shall be available to only those sugar mills which have exported domestically manufactured sugar under Open General License (OGL) but not under “advance license”.

 The sugar mills which export refined sugar through the sugar refinery by way of value addition to either raw sugar obtained as input from the domestic sugar manufacturer by invalidation of license issued under Advance Authorization Scheme (AAS) or raw or white sugar through OGL shall be considered to have exported domestically manufactured sugar.

The Central Government will provide a lump sum assistance for expenses on export of sugar limited to MAEQ of sugar mills for the sugar season 2019-20. DFPD shall closely monitor the prices of sugar, both in domestic as well as global markets and review the availability position of sugar on monthly basis and based on such reasons, DFPD may amend or withdraw the scheme at any time. The DFPD will also review the performance of sugar mills on quarterly basis and in case of non-performing mills, their MAEQ may be reduced and accordingly MAEQ of performing and willing sugar mills may be increased.

[Notification No. 1(14)/2019-S.P.-I]


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