Govt okays Rs 850cr sugar export subsidy

The central government has approved a relief package of Rs 850 crore for sugar exports, a ban on which was lifted in January on expectations of higher production this season.

Announcing the government's decision to provide incentives for sugar export, Agriculture Minister Sharad Pawar said that sugar production this year was expected to be around 250 lakh tonne and the country had carry over stock of 40 lakh tonne from last year.

The annual domestic requirement of the commodity was around 190 lakh tonne, he said.

Pawar said the central government would bear an expenditure of Rs 1,300 per tonne for sugar to be exported by the states which had ports and Rs 1,400 for those who were away from the coast.

He, however, said the incentive package for sugar exports had been referred to Election Commission for its approval in view of the coming assembly polls in Uttar Pradesh.