GOOD NEWS for sugar companies, cane farmers: Modi government signs export contract for more than target figure of 60 LMT sugar, 52 LMT exported within 6 months
The move is expected to not only help sugar companies, but would also improve liquidity of sugar mills and timely payment of sugarcane farmers.
Sugar export has got a major push from the central government as the government has signed contract to export surplus sugar outside the country. The move is expected to not only help sugar companies, but would also improve liquidity of sugar mills and timely payment of sugarcane farmers. So far, a contract pertaining to export of 63 LMT sugar have been signed and 52 LMT exported as well between January 1 and July 15, 2021.
See Zee Business Live TV Streaming Below:
As per Food & Public Distribution Department, during the current sugar season 2020-21, 2973 LMT of sugarcane worth more than the historically high figure of Rs. 90,000 crore, has been crushed by the sugar mills. while 308.5 LMT sugar has been produced. "More than 20 LMT sugar is being diverted towards ethanol," it said.
"To facilitate the #export of surplus sugar from the #Country in the current sugar season 2020-21, against the target of 60 LMT, contracts of 63 LMT have been signed, 56 LMT lifted from sugar mills & record 52 LMT exported in just six & half months from 1st Jan to 15th July 2021," said Department of Food & Public Distribution in a tweet on Friday.
This will come as major boost to the farm sector as the government aims to divert all the 60 LMT of excess sugar annually produced towards ethanol by sugar season 2025-26.
At present, 23 states are participating in the sugar subsidy scheme for Antyodaya Anna Yojana (AAY) families . In the current FY, more than Rs 85 crore have been released till date to different states on account of sugar subsidy to AAY families, as per the Department of Food & Public Distribution.
"To provide a source of #energy to the poorest of the poor, the AAY #families are provided one kg of sugar per family per month for which the Central Government is reimbursing subsidy @ Rs. 18.50 per kg to the participating States/UTs," tweeted the department
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.