The government has announced a Rs 6,268-crore subsidy for export of 6 million tonnes of sugar for 2019-20 advertising and marketing yr, starting in October, to help coins-strapped turbines liquidate surplus and clear sugarcane arrears to farmers.

The Cabinet Committee on Economic Affairs has given its acclaim for offering a lump sum export subsidy of Rs. 10,448 in keeping with etric Tonne to sugar turbines for the sugar season 2019-20. The overall predicted expenditure of approximately Rs.6,268 crore may be incurred for this purpose.

The lump sum export subsidy may be supplied for fees on advertising costs together with managing, upgrading and different processing prices, costs of global and internal transport and freight prices on export of up to 60 lakh tonnes of sugar restrained to Maximum Admissible Export Quantity (MAEQ) allocated to sugar mills for the sugar season 2019-20.

The subsidy might be immediately credited into farmers’ account on behalf of turbines in opposition to cane rate dues and subsequent balance, if any, could be credited to mill’s account.

In wake of surplus sugar manufacturing in the course of sugar season 2017-18(October – September) and sugar season 2018-19, notwithstanding numerous measures taken by way of the Government, the ensuing sugar season 2019-20 is predicted to commence with a gap stock of about 142 lakh tonnes and season quit stock are anticipated to be about 162 lakh tonnes.