Govt fixes FY15 sugar subsidy at Rs 4000/mt

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has approved the continuation of the incentive scheme for marketing and promotion services of raw sugar production during current sugar season 2014-15 (October-September) for a quantity of 14 lakh million tonne.

As the quantity is fixed, settlement of claims will be prioritized on the basis of the date of export/deemed export as certified by concerned customs and excise authorities.

The CCEA further approved fixed uniform rate of Rs 4000 per mt for 2014-15 sugar season.

Other conditions will remain the same, as were last year except that in case of mills having alcohol production capacities, the incentive would be available if they offer to supply ethanol to oil marketing companies under the EBP upto 25 percent of their annual production level of alcohol.

This will help sugar mills to clear the cane price dues of the farmers.