Breaking News

You are here » Indian-Commodity  :  Commodities  :  Sugar  :  Food Ministry moves Cabinet note on creating sugar buffer stock, fixing minimum ex-mill price

24-May2018

Food Ministry moves Cabinet note on creating sugar buffer stock, fixing minimum ex-mill price

In order to help cash-starved millers to clear their cane arrears which have surged to about Rs 22,000 crore, the Food Ministry has moved a draft Cabinet note on creating a sugar buffer stock of 3 million tonne and fixing a minimum ex-mill price. This situation has been created because of sharp fall in sugar prices and record production. It has prepared a draft cabinet note proposing 2-3 interventions.

The Ministry has proposed setting up of a buffer stock of up to 3 MT sugar, fixing of a minimum ex-mill sale price at around Rs 30 per kg, re-introducing the monthly release mechanism and imposing stock limits on mills by fixing quota for each mill. Currently, the average ex-mill price of sugar is in the range of Rs 25.60-26.22 per kg, below the cost of production.

As per the data, India's sugar production has touched an all-time high of 31.6 million tonne (MT) so far in the 2017-18 season (October-September) on higher cane output, leading to a surge in cane arrears to Rs 22,000 crore. Earlier, the government had approved a production subsidy of Rs 5.5 per quintal for sugarcane farmers to help millers clear cane arrears.  



Related News

View all news

India's sugar output touches 32.11 MT in October-April: ISMA

The industry body, Indian Sugar Mills Association (ISMA) has said that the country's sugar output reached 32.11 million tonnes (MT) in the first seven months (October-April) of the ongoing marketing year......

Food Ministry moves Cabinet note on creating sugar buffer stock, fixing minimum ex-mill price

In order to help cash-starved millers to clear their cane arrears which have surged to about Rs 22,000 crore, the Food Ministry has moved a draft Cabinet note on creating a sugar buffer stock of 3 million......

India's sugar production stood at 310.37 LT till April: ISMA

India's sugar production stood at 310.37 lakh tons (LT) in the current season till April 30, 2018. As per data compiled by Indian Sugar Mills Association (ISMA), with 130 sugar mills still operating, majorly......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......