Sugar exporters to get $2/t less

after deliberating on it for more than six months, the government today reduced depb on white sugar to 4 per cent from the earlier 5 per cent. this would mean exporters will earn $2-3 less on every tonne of sugar exported at current international price levels. no depb drawback has been allowed for raw sugar. however, as exporters are going to get a transport subsidy soon, this loss in earnings will be amply compensated by the government. sugar exporters got the 5 per cent depb bonanza two years ago when the government was desperate to push millers into offloading stocks in the world market. the rate was also the highest among all agri commodities in india. but subsequently government began to realise that the rate was perhaps unjustified. a committee was formed within the dgft to analyse data collected by excise commissioners across the country on the chemicals imported by sugar mills for refining. this data showed that most mills were not importing chemicals in large-enough quantities to justify a 5 per cent drawback. trade sources, however, say the premise of this data collection is flawed as only those mills exporting sugar invest in importing chemicals to get better quality and a lower icumsa level.