Cabinet to discuss sugar bailout package on Wednesday

After announcing a higher price for ethanol manufacturers last week, the government is now expected to come out with a bailout package for sugar sector.

The cabinet is likely to discuss various incentives for sugar industry which has been struggling with high buffer stock and weak prices for over an year now, sources said.

The cabinet may discuss increasing the minimum selling price for sugar mills to Rs 34/ kg for 208-19 (Oct-Sep) season, from 29 rupees for the current season. This price, however, would be lesser than the industry's demand of Rs 37/kg.


The government may also announce an increase in the export incentives from the current price of Rs 55/tn.

The bailout package is aimed at helping not only the stressed sugar sector but also the farmers as a lot of cane arrears have been piling up due to poor condition of the industry and mills are likely to clear the dues after they recover financially.