Great Open Door for India to Export Sugar: Reconsidering Export Subsidy

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The government is reconsidering the extension of sugar trade appropriations as India has got a great occasion to sell the sugar in the global market during November-April of the 2019-20 season that initiated for the current month. India, the world's second-biggest sugar-producing country, had to offer export subsidies during the most recent two years so as to lessen excess stocks and help money starved sugar processes clear cane payment to cultivators.  

As per official sources, the food service is dealing with a proposition for seeking cabinet approval for the extension of the current sugar trade strategy for around 6 million tons in the 2020-21 season. On October 30, Food Minister Piyush Goyal had said the legislature was not considering an extension of the export subsidy strategy, yet after several rounds of consultation with partners and policymakers, a new idea is being given to the proposition, sources said.  

Industry specialists are of the view that India needs to export should be at least more than 5 million tons of sugar this year to guarantee domestic rates don't fall underneath the cost of production and make it hard for plants to pay stick producers on time. The overflow stock circumstance is required to proceed with this season too in light of the fact that domestic sugar creation is fixed at 31 million tons, well over the yearly interest of 26 million tons.

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