Cabinet approves creation of buffer stock of 40 LMT of sugar for one year

Speed Post News Network

New Delhi : The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved  Creation of buffer stock of 40 lakh metric tonnes (LMT) of sugar for one year and to incur an estimated maximum expenditure of Rs 1,674 crore for this purpose. However, based on the market price and availability of sugar, this may be reviewed by the Department of Food and Public Distribution any time for withdrawal / modification.

The reimbursement under the scheme would be met on quarterly basis to sugar mills which would be directly credited into farmers’ account on behalf of mills against cane price dues and subsequent balance, if any, would be credited to the mill’s account.

This decisions will lead to improvement in the liquidity of sugar mills, reduction in sugar inventories, stabilisation in sugar prices by alleviating  price sentiments in domestic sugar market facilitating timely clearance of cane price dues of farmers; and benefits for sugar mills in all sugarcane producing States by way of clearing sugarcane price arrears of sugar mills, according to a PIB release.