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Govt approves Rs 6,268 crore subsidy to promote sugar exports

The sugar export subsidy would be directly credited into farmers' accounts on behalf of mills against sugarcane price dues. Subsequent balance, if any, would be credited to mills' account.

twitter-logo BusinessToday.In   New Delhi     Last Updated: August 28, 2019  | 20:57 IST
Govt approves Rs 6,268 crore subsidy to promote sugar exports
The CCEA, chaired by Prime Minister Narendra Modi, has approved sugar export policy for evacuation of surplus stocks during sugar season 2019-20

The Cabinet Committee on Economic Affairs (CCEA) has approved sugar export policy for evacuation of surplus stocks during sugar season 2019-20. The CCEA, chaired by Prime Minister Narendra Modi, gave nod to sugar export subsidy of about Rs 6,268 crore to liquidate surplus domestic stock and help mills in clearing huge sugarcane arrears to farmers.

"We have taken an important decision in the interest of sugarcane farmers. The cabinet has approved export subsidy for 6 lakh metric tonne (LMT) for 2019-20," Information and Broadcasting Minister Prakash Javadekar told reporters after the Cabinet meeting on Wednesday.

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The government will provide a lump sum subsidy of Rs 10,448 per metric tonne to sugar mills for the sugar season 2019-20, the minister said. The total estimated expenditure of about Rs 6,268 crore will be incurred for this purpose.

The export subsidy will be provided for expenses on marketing costs including handling, upgrading and other processing costs, international and internal transport costs and freight charges.

The subsidy would be directly credited into farmers' accounts on behalf of mills against sugarcane price dues. Subsequent balance, if any, would be credited to mills' account.

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The decision will benefit millions of farmers in Uttar Pradesh, Maharashtra and Karnataka as well as other states, Javadekar added. Maharashtra and Haryana are among the top sugar cane producing states in the country.

Given the surplus sugar production in the last two seasons and various measures taken by the government, the ensuing sugar season 2019-20 is expected to commence with an opening stock of about 142 LMT and season-end stock is expected to be about 162 LMT.

Edited by Chitranjan Kumar

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