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India, the world's second-largest sugar producer, on Tuesday extended by six months non-cash incentives to help exports by mills hit by low international prices. The government said in February sugar meant for export would be exempt from the compulsory 10 percent levy quota until July 2.
The government has now extended the incentive by six months to January 2008, an official statement said. In India, sugar mills contribute 10 percent of their total output, known as levy quota, to build government stocks for sale to the poor at cheaper prices.

Copyright Reuters, 2007

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