NEW DELHI: The government will not penalise sugar exporters whose shipments plunged by 5 per cent of the committed quantity. The decision has been taken with the approval of Competent Authority.
“A variation of (-) 5 per cent in weight in exports of sugar against registered contracts shall not be treated as default for the purpose of imposition of penalty or debarment from future registrations,” Director General of Foreign Trade ( DGFT) said in a circular.
In May, the Commerce Ministry has eased conditions for sugar exports by raising the quota to 25,000 tonnes from 10,000 tonnes.
In the 2011-12 marketing year, the government had allowed 2 million tonnes of sugar exports.
Country's sugar output is likely to touch 26 million tonnes in 2011-12, higher than the annual demand of 21.5-22 million tonnes.