According to the government, both the sugar industry and the sugarcane crop are in crisis. This is mainly due to high domestic production.
The Modi government has made an important decision in the interest of sugarcane farmers on Wednesday. Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi approved the export subsidy of Rs 3,500 crore. This subsidy will be available for the export of 6 million tonnes of sugar to the sugar mills during the marketing year 2020-21. . This will help in payment of dues to sugarcane farmers. About 5 crore sugarcane farmers will benefit from this decision of the government.
Giving information about the decision of the cabinet, Union Minister Prakash Javadekar said that the CCE has approved a subsidy of Rs 3500 crore for the export of 6 million tonnes of sugar. This amount of subsidy will be given directly to the farmers. He says that this decision will benefit about 5 crore sugarcane farmers and 5 lakh workers involved in sugar mills and related activities.
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Sugar: production over demand
Javadekar says that both sugar industry and sugarcane cultivation are in crisis. This is mainly due to high domestic production. Domestic production is 310 lakh tonnes against the demand of 260 lakh tonnes. In the previous marketing year 2019-20, the government gave a lump sum export subsidy of Rs 10,448 per tonne. This cost the government exchequer Rs 6,268 crore. During the current marketing year, the government has proposed a lower export subsidy than the previous year.
Source: www.financialexpress.com