The government is considering creating a three million tonne sugar buffer stock to help millers clear about Rs 22,000 crore dues to cane growers, Food Minister Ram Vilas Paswan said today.
Sugar mills' financial health has worsened due to sharp fall in prices of the sweetener in the wake of a record production of 31.6 million tonne (MT) so far in the 2017-18 season (October-September).
"We are still considering a proposal to create a buffer stock of 3 million tonne. We are taking views from other departments," Paswan told reporters.
A draft cabinet note on the proposal has been moved for inter-ministerial consultation after NCP chief and former agriculture minister Sharad Pawar shot off a letter to Prime Minister Narendra Modi seeking urgent intervention to deal with huge sugar glut in the market.
Besides setting up of the buffer stock, the food ministry in the draft cabinet note has proposed fixing
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