New Delhi: Union Minister Prakash Javadekar on Wednesday announced that the Cabinet Committee on Economic Affairs has given its approval to provide a lump sum export subsidy for 60 lakh metric tonnes of sugar.
The lump subsidy is set at Rs 10,448 per metric tonne to sugar mills for the sugar season 2019-20. The total estimated expenditure of about Rs 6,268 crore will be incurred for this purpose.
The subsidy will be provided for expenses on marketing costs including handling, upgrading and other processing costs, costs of international and internal transport and freight charges, a press release said.
Javadekar said that the subsidy would be directly credited to farmers' account on behalf of mills against cane price dues and subsequent balance, if any, would be credited to the mill's account. "This announcement is in line with the provisions of the Agreement on Agriculture and thus is World Trade Organisation compatible," he added.
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