Govt. has cleared sop for sugar sector by clearing export subsidy for 60 lakh tonnes (6 million tonnes) of sugar at a cost of Rs 6,268 crore. The move is likely to not ease the glut in the sector and also help meet the dues of farmers.
As it is the subsidy amount will be directly transferred to the accounts of sugarcane farmers on behalf of industries. The payout is set at Rs 10,448 per metric tonne for the 2019-20 sugar season.
Sugar stocks on the move inched higher including the likes of Dwariskesh Sugar (up 1.5%), Mawan Sugars (up 2.88%) , Balrampur Chini Mills ( up 3.52%).
Notably, this is the second such booster package, the first was when the govt. increased the minimum support price for sugarcane ahead of the Lok Sabha elections.