The Central Government has amended
the Sugar Development Fund Act, 1982. The amendment, which comes
into effect from 21st June 2002, inter-alia, provides
that internal transport and freight charges on export shipments
of sugar shall be reimbursed from the Sugar Development Fund to
the sugar mills.
The Central Government has also notified
the Sugar Development Fund Rules, 1983 providing for the manner
in which such reimbursement will be allowed. As per these rules,
the reimbursement of expenditure on internal transport & freight
shall be restricted to
- for the distance from the sugar factory to the
nearest loading railhead, the transportation rate as specified
in the Sugar (Price Determination for Production) Order of
the relevant sugar season;
- for the distance from loading
railhead nearest to the sugar factory to the railhead nearest
to the port, the railway freight by the shortest route; and
- for the distance from the
railhead nearest to the port to the point of loading at port,
the transportation rate as specified in the Sugar (Price Determination
for Production) Order of the relevant sugar season.
During April, 2001 and February,
2002 for which the statistical data of the Directorate General
of Commercial Intelligence & Statistics (DGCI&S), Kolkata
are available, the quantity of sugar exported from India is estimated
at 13,57,544 MTs at the estimated value of Rs.1615.06 crores.
The announcement of the policy for
reimbursement of expenditure on internal transport and freight
on export shipments of sugar is expected to give a boost to export
of sugar during the current financial year.
