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| Govt approves creation of sugar buffer stock of 40 LMT for 1 yr |
Govt approves creation of sugar buffer stock of 40 LMT for 1 yr
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the creation of a buffer stock of 40 lakh metric tonnes (LMT) of sugar for one year from August 1, 2019 to July 31, 2020.
The government will spend an estimated Rs 1,674 crore for this purpose. The decision of approving a buffer stock is to maintain demand-supply balance and to stabilise sugar prices.
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 or modification.
The reimbursement under the scheme would be met on a 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.
The decision will lead to an improvement in the liquidity of sugar mills, reduction in sugar inventories, stabilisation in sugar prices by alleviating of price sentiments in the domestic sugar market and thereby facilitate the timely clearance of cane price dues of farmers.
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