Govt. approves sugarcane subsidy of Rs. 5.5 per quintal
Context
Sugar production has hit record highs this year, crossing domestic consumption prices, and leading to a crash in prices. Industry lobbyist Indian Sugar Mills Association (ISMA) estimates that wholesale sugar prices have fallen by Rs. 9 per kg over the past five months, and the mills are now incurring a loss of Rs. 8 per kg of sugar
What has happened?
The government has approved a subsidy of Rs. 5.5 per quintal of sugarcane crushed in the 2017-18 season to help sugar mills clear more than Rs. 19,000 crore in dues to cane farmers
Why the subsidy?
Sugar production has hit record highs this year, crossing domestic consumption prices, and leading to a crash in prices. Industry lobbyist Indian Sugar Mills Association (ISMA) estimates that wholesale sugar prices have fallen by Rs. 9 per kg over the past five months, and the mills are now incurring a loss of Rs. 8 per kg of sugar. Hence, the subsidy
