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October 03, 2018

Policy boost for sugar mills

Exports to pick up despite weak international prices

The Cabinet Committee on Economic Affairs (CCEA) has approved a comprehensive policy package of Rs 5,500 crore on 26th September, 2018, to improve liquidity of sugar mills and provide assistance for clearing cane arrears, which stand at Rs 13,000 crore for sugar season (SS) 2017-18.


The package includes:

  • Rs 1,375 crore towards internal transport, freight, handling and other charges to facilitate export for SS 2018-19. The subsidy for mills across India would be as follows:
    • Rs 1,000/ tonne of sugar for mills located within 100 km of ports
    • Rs 2,500/tonne of sugar for mills located beyond 100 km from the ports and in coastal states
    • Rs 3,000/tonne of sugar for mills located in non-coastal states or actual expenditure, whichever is lower
  • Raw material subsidy of Rs 13.88 per quintal of cane crushed during SS 2018-19 to be provided to mills which fulfil the conditions stipulated by the Department of Food and Public Distribution. A total expenditure of Rs 4,163 crore has been approved for this purpose
  • To ensure payment of cane dues to farmers, both these subsidies would be credited directly to accounts of farmers on behalf of sugar mills