NEW DELHI (Reuters) - India is looking at providing incentives for production of raw sugar and also at doubling the mandatory blending of ethanol in gasoline to 10 percent, Farm Minister Sharad Pawar said, as the world's second-biggest sugar producer attempts to help mills.
"We want to encourage production of raw sugar," Pawar told reporters on Friday after meeting with food, finance, oil and civil aviation ministers to decide on financial assistance to cash-strapped sugar mills.
Pawar said he favours raising raw sugar production to at least 4 million tonnes in 2013/14.
India traditionally produces white sugar, but there are fewer buyers for it in the world market. Raw sugar can be sold easily in the world market.
Mills in India are struggling because they have to pay supported cane prices to farmers, while domestic and international sugar prices remain depressed.
(Reporting by Mayank Bhardwaj; editing by Malini Menon)
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