The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has given its approval for providing a lump sum export subsidy
ISLAMABAD -- Shahzad Akbar said as per audit report 2016-17 of the Chaudhry Sugar Mill, an export subsidy
was obtained on the claim of sugar export while the public department concerned denied having any record in that regard.
The government has announced a crackdown on sugar millers, but it remains to be seen whether a spine can be shown against the sugar cartel to which the previous government approved Rs.8 per kilogram export subsidy
to make up their losses because of prevailing low price of sugar in the international market.
Brazilian and Australian sugar industry groups have joined forces and are working together with their respective governments to prepare a formal complaint to the World Trade Organization (WTO) over any possible sugar export subsidy
by India, a top Brazilian sugar official told.
The investor, who spoke on the condition of anonymity, added that the food companies' share of total export subsidy
arrears amounted to about EGP 1.5bn.
It should use the sugar export subsidy
to buy sugar for distribution to poor families.
Instead of approving the receipt mechanism, the PML-N government doled out billions of rupees in export subsidy
to the sugar barons.
However, the sector is already benefitting from export subsidy
(4 to 7 per cent on FOB value of exports).
Developed country members should eliminate their scheduled export subsidy
entitlements from the date of adoption of this decision and developing country members should eliminate their export subsidy
entitlements by the end of 2018.
The nine-page decision states that WTO members that are developed countries will immediately eliminate their remaining export subsidy
Talking to VP FPCCI Fahmida Kausar Jamali, Tabassum Anwar of QCCI, Chairman Coordination FPCCI Malik Sohail and Malakand Investor Iftikhar Khan, he said that sugar export subsidy
for the last year was Rs10 and there is no justification for the hike.
Consensus also emerged on creating buffer stock, restructuring of loan, promotion of ethanol output, export subsidy
on white sugar to help solve the current crisis faced by farmers and millers.