India on Thursday cut sugar export subsidies by 31.4% for the current season which ends on Sept. 30, according to a government order issued by the Ministry Of Consumer Affairs, Food And Public Distribution.
Late last year, India, the world's biggest sugar producer behind Brazil, approved subsidies of 5,833 Indian rupees per tonne to encourage cash-strapped mills to export 6 million tonnes of sugar in the current 2020/21 season. The government subsidies for sugar exports now stands at 4,000 rupees a tonne, said the Ministry Of Consumer Affairs, Food And Public Distribution, without giving any reason for its decision.
India's move to give sugar export subsidies of 5,833 rupees a tonne spurred a flurry of overseas export deals. With the help of the subsidies, trade sources said dealers have contracted to export 5.7 million tonnes of sugar in the 2020/21 season.
Higher sugar exports from India, also the world's biggest consumer of the sweetener, will cut back large inventories at home and prop up domestic prices, which will help the country's money-losing mills.Also Read: Retail inflation for farm, rural workers eases marginally on lower food prices
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