In view of stable international sugar prices, Food and Commerce Minister Piyush Goyal has said that the government is currently not considering an extension of sugar export subsidies for the 2020-21 season that commenced this month.
India, the world's second-largest sugar-producing country, had to offer export subsidies during the last two years in order to reduce surplus stocks and help cash-starved sugar mills clear cane payment to growers. Sugar mills exported 5.7 million tonne of sugar against the mandatory quota of 6 million tonne set for the 2019-20 season (October-September).
Goyal said sugar (export) subsidy is currently not under consideration because international prices are stable. If there is any requirement, the government will examine it at an appropriate time. The minister also mentioned that domestic sugar prices are ruling stable at Rs 40 per kg, a level that covers the cost of production for sugar mills. Therefore, sugar mills will not face any problem in clearing cane dues.