A higher demand in international markets had also seen Indian mills reporting good exports. However, last week, Goyal ruled out any extension of the subsidy scheme as the international sugar scenario is currently stable. As a second Covid -induced lockdown looms large over Europe, Brazilian mills are considering diverting 48 per cent of their cane towards sugar production, much higher than the earlier 35 per cent they were planning to.
The central government is yet to release the export subsidy due to the mills and the total due is as high as Rs 6, crore. Individual mills had taken loans to facilitate exports and now they have to to pay interest to the banks.
Unpaid interest of Rs 3, crore for maintaining buffer stock has also hit hard the balance sheet of mills. The Covid pandemic has further delayed the release of subsidy, which has led to many mills not having sufficient liquidity at the start of the season.
Naiknavare pointed out how the sugar sector failed to get any mention in the fiscal packages announced by Union Finance Minister Nirmala Sitharaman to boost the economy. Last week, the central government has announced a Rs per litre rise in the procurement price of ethanol.
This is the second signal given by the government to mills to divert cane towards production of ethanol rather than sugar. The industry has estimated that this year, nearly 20 lakh tonne of sugar will be diverted towards producing ethanol. Since , the U. Sugar Program has evolved into a thicket of government imposed price supports, import quotas, and tariffs that keep domestic sugar prices artificially high. The time has come for lawmakers to reexamine what is actually being accomplished by this corporate welfare scheme.
Below are five reasons the sugar program is quite literally all cost and no benefit for Americans. The sugar program has cost taxpayers billions. For American taxpayers, the sugar program has led to billions of their hard earned dollars being wasted propping up the sugar industry. Estimates show that from the sugar program cost taxpayers almost half a billion dollars. Consumers pay the price for sugar subsidies. As a result of the sugar program, the average wholesale price of domestically produced sugar in the U.
For instance in August of the U. This means that American consumers are not only footing the bill for these government backed handouts to big sugar, but are being made to pay higher prices for sugar and related goods as a result.
Sugar subsidies are crony capitalism at its worst. Much like the beleaguered Ex-Im Bank, the U. The program instead represents the worst of corporate welfare and cronyism that so often plagues D. Through the use of price supports, import quotas and tariffs, the sugar program destroys competition in the market, protecting the politically connected sugar industry at the expense of hard working Americans.
The sugar program is destroying thousands of U. Protectionist policies under the U. As a result, the sugar program has led to a loss of nearly 10, jobs annually in the U. Sugar handouts distort the market and harm domestic businesses. While artificially high prices and restricted competition is good for sugar producers, domestic sugar-using manufacturers alternatively are competing globally but paying for domestic sugar at a rate twice that of the global price, putting them at a severe disadvantage.
Photo credit: Moyan Brenn. A Roth IRA is a type of individual retirement account where someone contributes money that has been taxed before it enters the account. This allows contributions to the account to grow tax-free. After an individual has reached the age of 59 and a half, and once the account has been open for five years, an individual can withdraw the funds tax-and penalty-free.
Individuals often decide to convert their retirement savings from a traditional IRA to a Roth IRA so that they can withdraw the funds tax-free. Additionally, Democrats have proposed limits on rollovers. Effectively, this bill puts additional limits on Americans can do with their retirement savings.
This could make the usage of IRAs less attractive overall. In , over 37 percent of U. S households owned an IRA. According to the Bureau of Labor Statistics, 67 percent of private industry workers had access to employer-provided retirement plans in March Additionally, 91 percent of union workers had access to a retirement plan.
In their effort to raise revenue for future spending, Democrats are opening the door to present and future abuse of retirement accounts. Additional restrictions on rollovers and contributions, and increased IRS reporting is a slippery slope to more government intervention into individual retirement savings, and potentially less savings overall. Lawmakers should be opposed to the changes to IRAs in this package and the other billions of dollars of tax increases that will decrease the standard of living for all Americans.
This has been quite the week for New Jersey Republicans. They picked up at least 4 - and possibly as many as 8 - Assembly seats, elected a new Minority Leader for the General Assembly, and saw the Democratic Senate president ousted by a truck driver.
Of the Republicans who won in the Assembly, ten signed the Taxpayer Protection Pledge, vowing not to raise any taxes if elected. In the Senate, 12 of the victorious Republicans signed the pledge. Assembly Republicans also held a leadership election on Thursday to appoint a new Minority Leader. John DiMaio won the election Even with a much-closer-than-expected race for governor, the shocker of the election cycle was in the State Senate, where Republicans netted one seat as Democratic Senate President Steve Sweeney, one of the most powerful politicians in New Jersey, was defeated by a truck driver.
Edward Durr has become a media staple for pulling off one of the greatest political upsets in recent memory. In true David and Goliath fashion, Durr defeated Sweeney to represent the third legislative district, despite possessing a miniscule budget and Sweeney holding the position for nearly a decade. In , Republican challenger Fran Grenier spent millions in a failed attempt to unseat Sweeney.
The net result is reductions in U. Finally, there are other agricultural and environmental costs to these subsidies. Over half of U. The rest consists of sugar cane produced in high rain areas like the Mississippi delta region and Florida using very substantial amounts of nitrogen and other fertilizers that, because of runoff, have had severe impacts on water quality and the natural ecology of those regions.
With the House and Senate each debating their own farm bills, there has never been a better moment to reform this crony capitalist program. Other countries do indulge in similar follies.
Egypt — where most of the sugar processors are state-run companies — have flat out banned sugar imports for the next three months to protect their industry from the volatile prices on the world market. Russia has turned from a major world importer of sugar to a growing exporter, with the government having recently allowed for the establishment of sugar export associations to help facilitate further exports abroad.
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