NewDelhi : The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Wednesday approved creation of buffer stock of 40 lakh metric tonnes (LMT) of sugar for one year at an expenditure of Rs.1674 crores.
The decision is expected to improve in the liquidity of sugar mills and to reduce sugar inventories. Most importantly, it will stabilise the sugar prices in the domestic market.
“However, based on the market price and availability of sugar, this may be reviewed by the Deptt. of Food and Public Distribution any time for withdrawal / modification. The reimbursement under the scheme would be met on 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” a govt release said.