Government likely to provide subsidy of Rs 4.75/quintal on cane prices

Zee News Media

New Delhi: In order to aid the sugar industry, Government is likely to provide subsidy on cane prices to the tune of around Rs 4.75 per quintal.

As per CNBC-TV18 report, with the fair and remunerative price (FRP) currently around Rs 230 per quintal, the subsidy could be around 2-2.5% of the FRP amount. 

The report also added that the sugar industry could get a subsidy of nearly Rs 1200 crore since the crushing is expected to be around 255 million tonnes. 

The report, quoting sources, also, added that the subsidy on cane prices is likely to be linked to sugar exports. As per the report, sugar companies that export 12-15 percent of the crushing can avail the subsidy on cane prices.

Currently, the sugar prices having moved from Rs 19 per kg to Rs 25 per kg.