New Delhi:The Centre has so far cleared Rs 1,800 crore in subsidy to sugar mills for undertaking a mandated export of 6 million tonnes of the sweetener in the 2020-21 season-ending this month, according to a senior food ministry official.
The government had to offer export subsidies during the last three seasons to reduce surplus stocks and help cash-starved sugar mills clear cane payments to growers on time. It offered subsidies for the export of a fixed quota of sugar.
"About Rs 3,500 crore budget was allocated towards export subsidy for the ongoing season. Out of which, Rs 1,800 crore has been spent on clearing the subsidy claims," the official told PTI.
The balance subsidy will be paid to mills soon, once the funds are released from the finance ministry, he said.
The official said mills have already exported the entire quota of 6 million tonnes set for the current 2020-21 season. They have also exported sugar without subsidies taking advantage of the firm global trends.
This has encouraged mills to clear Rs 8,300 crore cane price dues to farmers so far in the current season, against the total payable dues of Rs 91,000 crore, he said, adding that the balance will also get cleared by the mills.
Exports were undertaken smoothly even as the government slashed subsidies on sugar exports for the current season from Rs 6,000 per tonne to Rs 4,000 per tonne because of firm international prices.