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India’s sugar exports on good course; contracts over 50 lakh tonnes so far

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Getty ImagesIndian sugar mills may achieve their target of exporting 6 million tonnes of the sweetener by the end of June, three months before September, when the 2020-21 season ends.

“So far, mills have contracted exports of 5 million tonnes of sugar. Exports are moving well. Last year, we had exported a record over 5.9 million tonnes of sugar. We expect to create a new record this year,” said Subodh Kumar Singh, joint secretary in the food ministry.

The surge in exports is mainly due to firm global prices and subsidy, which have made the overseas markets lucrative.

Singh said the government provides a subsidy of ₹5.83 on every kg of sugar exported up to 6 million tonnes. The subsidy amount is transferred directly to the farmers’ accounts.

“So, the more the exports, the more would be the liquidity which can be used to settle cane arrears,” he said.

Exports will help mills settle dues they owe sugarcane farmers, which is now coming down progressively from ₹21,200 crore, officials said.

Source: indiatimes.com

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