Assistance to Sugar Mills for Marketing, Transport & Export Fright expense

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 be provided to facilitate export which is to be used for payment of cane price dues of farmers for the sugar season 2019-20 and cane price arrears of previous sugar seasons.

Eligibility:

Sugar mills which fulfill the following conditions will be eligible for assistance under this Scheme

1. The sugar mills should have exported at least 50% of its MAEQ Maximum Admissible Export Quantity determined by the Central Government for such mills for the sugar season 2019-20, either themselves or through a merchant exporter.

 ‘’Sugar mill-wise Maximum Admissible Export Quantity (MAEQ) for each sugar mill in the country has been determined by the central government and published vide F. No. 1(14)/2019-SP-I dated 16th September, 2019 for sugar season 2019-20 (sugar season 2019-2020 means period of 01.10.2019 to 30.09.2020).This notification can be accessed at following link  https://dfpd.gov.in/writereaddata/Portal/Magazine/sugarmillwise.pdf]’’.

‘’The new sugar mills which commence sugar production for the first time during 2019-20 sugar season or the mills which were closed but restarted in the sugar season 2019-20 or the mills whose names are not given in above referred notification will have their MAEQ equivalent to 20% of their sugar production during 2019-20 sugar season.’’

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”, either itself or through an exporter or sourcing sugar from any other factory during sugar season 2019-20.

‘’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/white sugar through OGL shall be considered to have exported domestically manufactured sugar. The sugar mill which has originally manufactured the raw/white sugar or MAEQ holder in case of export through third party, as the case may be, shall be also eligible to receive assistance under this scheme. In this regard, the raw/white sugar manufacturer(s), MAEQ holder(s) if other than the sugar manufacturers and the sugar refinery for that purpose shall enter into bi-partite/tripartite agreement as the case may be. The refinery is also required to submit an undertaking on a non-judicial stamp paper declaring that the quantity of refined sugar has been exported by sourcing raw/white sugar from the domestic sugar mills clearly indicating the name of sugar mill(s) and MAEQ holder(s) if other than sugar manufacturer. The name(s) of such raw/white sugar manufacturer(s)/MAEQ holder(s) should also be indicated in the shipping bills relating to export of such refined sugar.’’

Extent of Assistance:

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, in the following manner

Supply of White/Refined Sugar By Sugar Mills To Exporter of Biscuits And Assorted Confectionery Products

• Against valid invalidation letter/ARO under advanced authorization/DFIA against export of biscuits and assorted confectionery products) is treated as deemed exports for the local supplier of such inputs and will be accordingly covered under MAEQ declared for 2019-20 sugar season.
• Is covered under 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 for export of sugar. Such sugar mills supplying sugar to DFIA holder/transferee are eligible for receiving assistance under (a) and (b) mentioned above.