India 2018

Food and Civil Supplies 279
Status of Export on Government Account
Non-basmati rice and wheat have not been exported from Central Pool
stocks of FCI on commercial basis during 2016-17. The Government also
permits export of wheat and rice to various friendly countries on diplomatic
basis/humanitarian aid on the recommendations of the Ministry of External
Affairs. A quantity of 19980 MT of par-boiled rice has been exported to
Egyptian government on government to government basis out of Central
Pool stocks. A quantity of 100 MT of rice has been provided to Sri Lanka on
humanitarian grounds on diplomatic basis.
Import of Rice and Wheat
No import of wheat and rice has been made for Central Pool stock during
2016-17. However, a quantity of 57,49,434 MT of wheat and 1,144 MT
of non-basmati rice has been imported by private traders/millers during
2016-17.
Basic custom duty on import of wheat was reduced from 25 to 10 per
cent from 2016. The custom duty on wheat has been imposed @ 10 per cent
from 2017. The basic custom duty on non-basmati rice is @ 70 per cent.
Sugar
Sugar Production
India is the largest consumer and the second largest producer of sugar in the
world. The production of sugar during the current sugar season 2016-17 is
estimated to be about 203.00 lakh MT against which 200.74 lakh MT
(provisional) has been achieved till June 2017.
Sugarcane Pricing Policy
With the amendment of the Sugarcane (Control) Order, 1966 in 2009, the
concept of Statutory Minimum Price (SMP) of sugarcane was replaced with
the 'Fair and Remunerative Price (FRP)' for 2009-10 and subsequent sugar
seasons. The cane price announced by the central government is decided on
the basis of the recommendations of the Commission for Agricultural Costs
and Prices (CACP) after consulting the state governments and associations
of sugar industry. The amended provisions of the Sugarcane (Control) Order,
1966 provides for fixation of FRP of sugarcane having regard to the following
factors:- (a) cost of production of sugarcane; (b) return to the growers from
alternative crops and the general trend of prices of agricultural commodities;
(c) availability of sugar to consumers at a fair price; (d) price at which sugar
produced from sugarcane is sold by sugar producers; (e) recovery of sugar
from sugarcane; (f) the realization made from sale of by-products viz.
molasses, bagasse and press mud or their imputed value; and (g) reasonable
margins for the growers of sugarcane on account of risk and profits.