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M'rashtra announces sugar export subsidy of Rs 1,000 per tonne

Press Trust of India  |  Mumbai 

The government today announced export subsidy of Rs 1,000 per tonne for raw sugar to boost the cash strapped sugar industry in the state, in addition to Rs 4,000 already unveiled by the Centre.

The state has also decided to decontrol molasses to give relief to the sector.

"The Centre has granted an export subsidy of Rs 4,000 per tonne of raw sugar to give relief to the sugar industry across the country.

"Sugar barons from the state were not happy with this and hence Chief Minister Devendra Fadnavis gave his nod and approved an export subsidy of Rs 1,000 per tonne to raw sugar," Co-operative Minister told reporters here today.

The sector is facing a crisis in the wake of falling prices in the wake of bumper production.

Maharashtra has recorded a bumper production of more than 800 lakh tonnes of sugar and it is expected to reach 900 lakh tonnes by the end of sugar crushing season, Maharashtra Co-operative Sugar Factories Federation Managing Director Sanjeev Babar said.

"We have made another decision to decontrol molasses. As of now, there is a ban on exporting even to neighbouring states," Patil said.

"The required quantity of molasses used in medicines and the liquor industry will be kept aside, while the rest will be exported. This will increase cash flow of sugar mills," he said.

First Published: Mon, April 13 2015. 22:48 IST