Panel to discuss incentives on raw sugar production

NEW DELHI: An informal group of ministers will meet on Friday to discuss incentives on raw sugar production, Food Minister K V Thomas said.

The committee headed by Agriculture Minister Sharad Pawar had earlier proposed assistance to the industry to export and produce 4 MT of raw sugar. "We are likely to finalise the incentives for raw sugar production that then will be taken to Cabinet," he said on Wednesday.

As per the recommendation of the food ministry, the Centre and states would bear assistance of about Rs 2,400 per tonne for production and export of raw sugar. The Central share, which could probably come to Rs 800 per tonne, would be borne by the Sugar Development Fund (SDF). India produced 80,000 tonne of raw sugar in the last sugar season (2012-13). The government is also looking to augment sugar exports from the country. India exported 3.42 lakh tonne of sugar, including raw sugar.

On the basis of WTO recommendation for marketing and promotion of a new product in the global market, the Indian government has recommended the assistance to raw sugar sector.

The Rs 80,000 crore sugar industry has been facing a cash crunch due to higher cost of production and lower selling prices in the wake of surplus sugar.