Govt cuts sugar export subsidy to Rs 4,000 a tonne on global price rise

Trade sources said it might not impact exports much; of the existing quota of 6 million tonnes, 5.7 million tonnes have already been contracted at higher subsidy rate

The Centre on Thursday slashed subsidy on sugar exports from Rs 6,000 per tonne to Rs 4,000 per tonne with immediate effect in view of firm global prices.

However, trade sources said the move may not impact exports much, as of the existing quota of 6 million tonnes, around 5.7 million tonnes have already been contracted at the older subsidy rate of Rs 6.000 per tonne.

For the ongoing 2020-21 marketing year (October-September), the government had fixed a subsidy of Rs 6,000 per tonne to facilitate exports, improving the liquidity of mills and enabling them to clear cane price dues