The Union Government has slashed the export subsidy on Sugar from Rs 10.44 per Kg to Rs 6 per Kg i.e. reduction by Rs 4.44, Punjab Cooperation Minister Sukhjinder Singh Randhawa said, appealing to the Centre to repeal the decision.
The move by the Centre would cause losses to the tune of Rs 2,768 crore to the sugarcane cultivators and sugar mills. The export subsidy for the year 2020-21 has been reduced to Rs 6 per Kg whereas during 2019-20 it stood at Rs 10.44 per Kg.
In a press communique, Randhawa said this decision would prove detrimental to the interests of the farmers as well as the sugar mills. The Sugarcane cultivators and the sugar mills are already reeling under the financial losses and they need some respite.
The Minister further pointed out that the Union Government had decided to provide export subsidy to the sugar mills at the rate of Rs. 10.44 per Kg for the year 2019-20 which was to result in Rs. 6828 crore accruing to the sugar mills of the entire country. But now this amount would be reduced to Rs. 3500 crore which is a crippling blow to both the sugar industry and Sugarcane cultivators.
The payments of the Sugarcane cultivators would be adversely affected to a large extent with the decision, revealed S. Randhawa who further said that the Union Government is also delaying the release of amount pertaining to export subsidy for the year 2019-20 which in turn is causing further delay in releasing the balance payment of the sugarcane cultivators of the country. An amount of Rs. 60.31 crore pertaining to the Cooperative sugar mills of Punjab is also yet to be released by the Centre, Randhawa added.