Centre cuts subsidy on sugar exports to ₹4,000 per tonne
21 May 2021, New Delhi, IN: The Centre on Thursday slashed subsidy on sugar exports from ₹6,000 per tonne to ₹4,000 per tonne with immediate effect in view of firm global prices.
For the ongoing 2020-21 marketing year, the government had fixed a subsidy of ₹6,000 per tonne to facilitate exports, thereby improving the liquidity of mills and enabling them to clear cane price dues to farmers. Sugar mills were mandated to export 6 million tonne of sugar in the current year. So far, 5.7 million tonne of the sweetener has been contracted for export. “Keeping in view of firm global prices of sugar, we have reduced subsidy on sugar exports by ₹2,000 per tonne to ₹4,000 per tonne with immediate effect,” Joint Secretary in the Food Ministry Subodh Kumar told PTI.
There won’t be an impact of this decision on sugar exports from India, he added.