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The Modi goverment is considering giving export incentives for 1.4 million tonne raw sugar, Food Minister Ram Vilas Paswan said on Wednesday, as mills started distress sale of the sweetener to pay cane farmers.
"The ministry's views is that we should give subsidy for 1.4 million tonne...the paper has been circulated for a cabinet meeting," Paswan told reporters.
Without any government incentive, Indian sugar is uncompetitive in world markets well supplied by low-cost producers Brazil and Thailand.
Subsidies of Rs 3,300 ($53) a tonne helped exports of raw sugar last year and sources said last month government was considering a rise in the subsidy to Rs 4,000 per tonne this year.
($1 = 62.1250 rupees)
