The subsidy will be transferred directly to the accounts of sugarcane farmers. The govt said this is part of its efforts to help sugar mills clear outstanding dues to sugarcane farmers.
The Union Cabinet has approved a subsidy worth Rs 3,500 crore to sugar mills for the export of 60 lakh tonnes of sugar in the marketing year 2020-21.
As per reports, this subsidy will be transferred directly to the accounts of sugarcane farmers.
The government said this is part of its efforts to help sugar mills clear outstanding dues to sugarcane farmers.
Briefing the media about the decision, Information and Broadcasting Minister Prakash Javadekar 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.
As per PTI, the minister said the decision will benefit 5 crore farmers.
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.
