K C Chatterjee

should rule in the home market. In view of this the government has released an additional 40,000 tonnes for the current month.
In 1978 government exported 6.47 lakh tonnes of sugar. This cost the government Rs 33 crores by way of subsidy to the industry. The govern- ment has stated categorically that it would not subsidise sugar export in 1979. By February end, government had contracted for export of 1.92 lakh tonnes but had shipped only about 5,000 tonnes. As an incentive to export, government has permitted industry to export directly under advice to government. In spite of the International Sugar Agreement, throughout 1978 the world price remained far below the floor level of 11 cents per lb. Even at the time of writing it is around 8 cents. Since the cost of Indian sugar is high, export prospects are bleak.