The cabinet will consider extending some incentives as early as this week to sugar mills, which are battling with high dues to growers on account of cane purchases, the farm minister said on Wednesday.
"The incentives will be in stages. Some incentives will be considered this week, while some more will be considered next week," Sharad Pawar told reporters.
Pawar heads a ministers' panel that is working on a bailout package for the struggling sugar mills.
Earlier, Food Minister K V Thomas, who is also a member of the panel, said the cabinet was likely to consider incentives for sugar mills next week.
Mills started cane crushing almost a month behind schedule citing a freefall in sugar prices and rising rates of cane. The delay has halved India's sugar output so far in the season beginning October.