New Delhi: As per reports, in a big relief to the sugar Industry, the Cabinet Committee on Economic Affairs approved the creation of 40 Lakh tonnes sugar buffer stock for one year from August 1, 2019, to July 31, 2020. For this, the Central government would incur the estimated maximum expenditure of Rs 1,674 crore.
Following the record sugar production, the sugar sector is reeling under the pressure of excess sugar; therefore, there was a demand for high buffer stock. In June, the cabinet note for the creation of buffer stock of 50 lakh tonnes was prepared, but it failed to get the nod due to fund scarcity.
The sugar buffer stock for the 2018-19 season is 30 lakh tonne, which ended on Jun 30.
According to the reports, the government has also decided to keep the minimum cane buying price for the next season steady.
According to the latest data, sugar mills in India owe sugarcane farmers Rs 15,222 crore. The Indian sugar sector is suffering from various hurdles from last two to three years, and to help the sugar mills, among creating buffer stocks, the government had also introduced various measures like soft loan scheme, hike in minimum selling price, scrapping of export duty, 100 per cent rise in import duty, and others.
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