Chapter 37



37.1 Under Article 53 of the International Sugar Agreement 1977 which came into force with effect from 1st January, 1976 for a period of five years and was ratified by India which makes India entitled to interest free loans at the rates prescribed from time to time by the International Sugar Organisation on special stocks of sugar held in conformity with its minimum obligation under Article 46 of the Agreement. Loans are to be made on quarterly basis by the said organisation and are used for the exclusive purpose of helping to defray the cost of holding the stocks. Out of total quantity of 2.5million MTRV to be held as special stocks under Article 46 of the Agreement, India has been given a quota of 1,25,357 metric tonnes Raw Value for accumulation. India created special stocks of 50,240 MTRV with effect from 1.1.1982 and subsequently increased it to the level of 1.25 lakhs MTRV upto 30.6.83. These special stocks are however subject to physical verification by Inspectors appointed by the said Organisation. First verification was conducted in September-November, 1982 to the satisfaction of I.S.O.. India is to receive interest free loans in US$ at the present ratio of 7 cents per Pound. Subject to the provision of Article 54 para 3 of the Agreement, these loans will be repaid in accordance with Article 53 para 3 of the Agreement unless earlier payment is required, pursuant to Article 53-2-3 of the Economic Rules. Repayment shall be made by crediting the amount due in US$ to an Account designated by the Fund Manager of Stock Financing Fund.

37..2 During the year 1982-83, 1983-84 and 1984-85, India has received a total assistance amounting to US$ 1.25 million, 1.70 million and 0.97 million respectively.

37..3 The particulars of loans and conditions thereof are indicated in Annexure I.