The government on Wednesday approved a subsidy of Rs 3,500 crore to sugar mills for the export of 60 lakh tonnes of sweetener during the ongoing marketing year 2020-21 as part of its efforts to help them clear outstanding dues to sugarcane farmers.
Briefing media after the meeting, Information and Broadcasting Minister Prakash Javadekar said the Cabinet Committee on Economic Affairs (CCEA) has approved a subsidy of Rs 3,500 crore on exports of 60 lakh tonnes of sweetener and the subsidy amount will directly be given to farmers.
The minister said both "sugar industry as well as sugarcane farmers are in crisis" because of high domestic production at 310 lakh tonnes as against the annual demand of 260 lakh tonnes.
The decision will benefit 5 crore farmers, said Javadekar, who is also Union Environment Minister.
In the previous marketing year 2019-20 (October-September), the government provided a lump sum export subsidy of Rs 10,448 per tonne, costing the exchequer Rs 6,268 crore.
Mills exported 5.7 million tonnes of sugar against the mandatory quota of 6 million tonnes set for the 2019-20 season (October-September), according to official data.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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