The Cabinet on Wednesday approved an assistance package of Rs 6,268 crore to enable sugar mills to export 6 million ton during 2019-20 sugar year starting October.
Union minister Prakash Javadekar said the amount will be directly pa id to the farmers whose cane arrears are due.
According to an official release, the lump sum export subsidy will be Rs 10,448 per tonne to sugar mills for the sugar season 2019-20.
"The decision is aimed to reducing the excess sugar stock and clear the arrears of sugarcane farmers," food minister Ram Vilas Paswan said.