Food Ministry to move Cabinet note seeking extension of sugar buffer stock subsidy scheme

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New Delhi: Recently, sugar mills had sought an extension of the sugar buffer stock scheme that expired on July 31, 2020. According to the news agency PTI, Food Secretary Sudhanshu Pandey said on Friday, “The Food Ministry will soon move a Cabinet note seeking an extension of the sugar buffer stock subsidy scheme for next year.”

Last year, the Union Cabinet had approved the creation of a 40-lakh-tonne sugar buffer stock, for which the government has reimbursed the carrying cost of about Rs 1,674 crore to participating sugar mills.

Recently, a task force under the NITI Aayog has recommended scrapping of the buffer stock subsidy scheme for sugar on grounds that it incentivises mills to overproduce, and so is an additional expense for the government.

According to the PTI, he said, “Whether to extend the scheme or scrap, it will be decided by the Cabinet.”

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