Govt raises sugar buffer stock to 50 lakh tonne

The government today decided to increase the buffer stock of sugar to 50 lakh tonne for this year from the current 20 lakh tonne in the wake of the bumper production expected this year.

The Cabinet Committee on Economic Affairs (CCEA) has approved a proposal by the Agriculture Ministry to increase the buffer stock of sugar by 30 lakh tonne, Finance Minister P Chidambaram told reporters here.

Sugar output in the country, which is the world's second-largest sugar producer and biggest consumer, is expected to touch 280 lakh tonne this season ending September while domestic consumption is likely to be 190 lakh tonne. After including last year's carry-over stock of 40 lakh tonne, the country would have a total stock of 130 lakh tonne this year.