Sops for mills that export sugar and divert it to ethanol

The Centre on Thursday announced an incentive for sugar mills in the form of an additional domestic sales quota to those that export sugar and divert the commodity towards ethanol making, in the new 2021-22 season starting October.

Sugar mills have also been asked to take advantage of firm global sugar prices and plan export of raw sugar in advance in the new season (October-september), it said.

This indicates that the government is unlikely to extend the export subsidy from the new season, as it would be easier for domestic mills to sell sugar abroad in view of firm global prices.

India, the world's secondlargest sugar-producing country, had to offer export subsidies in the past two years, to reduce surplus stocks and help cash-starved sugar mills clear cane payment to growers.

In a statement, the food ministry said, "Sugar mills which will export sugar and divert sugar to ethanol would also be given incentive in the form of additional monthly domestic quota for sale in the domestic market."