Union Cabinet approves Rs 6,268 crore sugar export subsidy

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given its approval for providing a lump sum export subsidy at Rs 10,448 per tonne to sugar mills for the sugar season 2019-20. The total estimated expenditure of about Rs 6268 crore will be incurred for this purpose.

New Delhi:The Union Government on Thursday approved an export subsidy of Rs 10,448 per tonne to sugar up to a maximum of 6 million tonnes at an estimated cost of Rs 6286 crore.

The Cabinet Committee on Economic Affairs headed by Prime Minister Narendra , approved the payment of lump-sum export subsidy to sugar mills will provide expenses on marketing, handling, processing and transport charges and the amount would be directly credited into farmers' account on behalf of mills against cane price and subsequent balance, if any, would be credited to mill's account.

“We have taken an important decision in the interest of sugarcane farmers. The Cabinet has approved export subsidy of 6 mt for 2019-20,” Information and Broadcasting Minister Prakash Javadekar said after the Cabinet meeting.

The industry welcomed the government's decision and said that it will help the mills reduce carrying cost and interest burden as also help them pay cane price to farmers on time. This will benefit millions of farmers in UP, Maharashtra, and Karnataka as well as other states.

The subsidy would be directly credited into farmers' account on behalf of mills against cane price dues and subsequent balance, if any, would be credited to mill's account.

Speaking to ETV Bharat, chairman of Kisan Shakti Sangh, Chaudhary Pushpendra Singh said: "It is a decision in the interest of the farmers and will help sugar mills to reduce excess stock."

Singh said that after this decision, exports of sixty lakh tonnes will be started from October so that the sugarcane farmers will get direct benefits.

Meanwhile, President of Kisan Shakti Sangh has demanded that sugar mills should spend the extra income from sugar exports to pay the outstanding amount of the farmers.

In this regard, MJ Khan, chairman of the Indian Council for Food and Agriculture, said that the surplus stock is continuously increasing due to record product, which slows down sugar uptake following which farmers have to sell sugarcane at low prices. By increasing export and giving subsidy on it, farmers will be benefitted.

In addition to this, the chairman of the ICFA said that the price of sugarcane should also be increased.