Cabinet clears Rs 6,268-cr sugar export subsidy

Cabinet clears Rs 6,268-cr sugar export subsidy
Image source: Google

New Delhi: The government on Wednesday announced a Rs 6,268 crore subsidy for export of 6 million tonnes of sugar during the 2019-20 marketing year starting October in order to liquidate surplus domestic stock and help mills in clearing huge sugarcane arrears to farmers. 

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.

"We have taken an important decision in the interest of sugarcane farmers. The cabinet has approved export subsidy for 6 million tonnes for 2019-20," Information and Broadcasting Minister Prakash Javadekar told reporters after the cabinet meeting.

A lump sum export subsidy of Rs 10,448 per tonne will be given to sugar mills in the 2019-20 marketing year (October-September), costing the exchequer Rs 6,268 crore as subsidy, he said.

This will benefit millions of farmers in Uttar Pradesh, Maharashtra and Karnataka as well as other states, he added. 

The government is providing subsidy for export of 5 million tonnes of sugar for the current 2018-19 marketing year.