Pratik Parija, Bloomberg
New Delhi: India, the world’s second-biggest sugar producer, will announce export incentives for sugar makers after securing permission from the election commission, said a food ministry official, who didn’t want to be identified.
India’s ruling Congress party faces an assembly election in Uttar Pradesh next month. The northern state is the nation’s biggest sugar cane-grower and sends a seventh of all lawmakers to federal parliament.
India will build a buffer of 2 million tons of sugar for two years and provide incentives to companies that export the sweetener amid a record production, the Press Trust of India reported 25 March, citing officials it didn’t name.
Companies may get a subsidy of as much as Rs1,450 a ton, the report said. An incentive of Rs440 a ton will be provided on the export of raw sugar, it said. The proposals were approved by the cabinet on 24 March, the report said.
— With reporting by Thomas Kutty Abraham