India to consider incentives for raw sugar production

India will consider providing incentives for production of raw sugar up to 4 million tonnes for exports in the next cabinet meeting, Food Minister K V Thomas said, as part of efforts by the world's second-biggest producer to stop adding to massive mounds of the refined grade which are piling up because of low prices.

Also read: Gold isn't the only precious metal in 2014The export incentives would be World Trade Organisation (WTO)-compatible and applicable for the crop produced in this and the next season, Thomas said on Thursday.

A group ministers under the chairmanship of Farm Minister Sharad Pawar on Thursday revived the proposal to be placed before the cabinet, but haven't decided about the quantum of incentives yet, Thomas said.

Indian mills traditionally produce white sugar but a global glut has made exports difficult. A rise in sugar refining capacity in Asia and Africa has now given an opportunity to export raws.