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Record sugar exports help reduce cane dues

General Studies – 3

Topic covered: Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security;


Context: Sugar mills have surpassed their 60 lakh tonne export target this year, making it easier for them to pay sugarcane farmers and reducing the arrears for this year to less than rupees 9,000 crore

Key points related to this

  •       Government has been encouraging diversion of excess sugar towards ethanol production and for exporting purposes
  •       In the last 4 years, exports of sugar has increased by more than 10 times
  •       The growth in the export is primarily due to demand for Indian sugar in the global market and also the assistance of centre to the tune of Rupees 6,000 per tonne to facilitate exports
  •       Despite this impressive growth, arrears are a major issue for sugarcane farmers in the country