Mills to benefit from sugar subsidy, multi-factor investment strategy; all this and more on Moneycontrol Pro
The government came to its annual rescue of sugar mills, providing them with a substantial export subsidy to make up for depressed global sugar prices
India to keep sugar export subsidies even as rivals complain to WTO; govt likely to make changes in providing incentives
Years of bumper cane harvests and record sugar production have hammered Indian sugar prices, making it hard for mills to pay money owed to farmers, who form an influential voting bloc.
Sugarcane has become a bitter crop for Maharashtra. Ethanol is just one more way by which it seeks to gain legitimacy.
Centre bails out sugar industry: All you need to know about the whopping Rs 8,500 cr package and why it was announced
The MSP of sugar, at Rs 29 per kg, is inadequate and does not cover production costs, making it difficult for mills to clear cane arrears.
The government is likely to raise the levy price of sugar-the rate at which it buys the sweetener from mills to sell through ration shops -by over Rs 2 to about Rs 22 per kg for the current year.