The Centre has cleared a subsidy of Rs. 4,000 a tonne to sugar mills for exports of up to 1.4 million tonnes of raw sugar for the current season to September.

The Cabinet Committee on Economic Affairs, which approved the concession, decided that other conditions will remain the same as last year except in the case of mills that have alcohol production capacities. These mills will be given incentives for supplying ethanol to oil marketing companies under the ethanol blended programme. They will be eligible for incentives for up to 25 per cent of their annual alcohol production level, an official statement said.

The move will help mills clear sugarcane arrears, estimated at Rs. 12,300 crore up to February 15. The decision will help corporates such as Bajaj Hindustan, Triveni Engineering, Dhampur Sugar, Bannari Amman and Sakthi Sugars.