The Centre has so far cleared ₹1,800 crore in subsidy to sugar mills for undertaking a mandated export of 6 million tonnes of the sweetener in the 2020-21 season-ending this month, according to a senior food ministry official.

The government had to offer export subsidies in the last three seasons to reduce surplus stocks and help cash-starved sugar mills clear cane dues to growers on time. It offered subsidies for the export of a fixed quota of sugar. “About ₹3,500 crore budget was allocated towards export subsidy for the ongoing season. Out of which, ₹1,800 crore has been spent on clearing the subsidy claims,” the official said.

The balance subsidy will be paid to mills soon, once the funds are released from the finance ministry, he said. The official said mills have already exported the entire quota of 6 million tonnes during the current season.