Union Cabinet approves Rs 3,500 crore sugar export subsidy for 2020-21

As part of its efforts to help them clear outstanding dues to sugarcane farmers, the Union Cabinet has approved a subsidy of Rs 3,500 crore to sugar mills for the export of 60 lakh tonnes of sugar during the ongoing marketing year 2020-21.

Briefing media persons after the meeting, Information and Broadcasting Minister Prakash Javadekar said that the Cabinet Committee on Economic Affairs (CCEA) has approved a subsidy of Rs 3,500 crore on exports of 60 lakh tonnes of sugar and the subsidy amount will directly be given to farmers.

The minister said both the 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 a official data.