The Cabinet Committee on Economic Affairs has decided to extend production subsidy to sugar mills which achieve expected performance in respect of export of sugar and supply of ethanol.

“This has been done to offset the cost of cane and facilitate timely payment of cane price dues of farmers,” an official release said.

Due to a drought situation, there has been significant decline in sugarcane/sugar production in the country — by about 1.8 million tonnes and 0.8 million tonnes respectively.

Revised target

Drought-affected States had requested the Centre to reduce the target of sugar export and ethanol supply due to non-availability of sufficient sugarcane and molasses.

Initially, the export quota target was scaled at 15.70 kg of sugar for each tonne of estimated cane crushing. “Now, the export quota would be revised on a scale of 15.70 kg of sugar for each tonne of cane actually crushed by the mills during current sugar season or previously notified minimum indicative export quota target, the release said.