Akhilesh Yadav writes a letter to PM Modi regarding subsidy on raw sugar export

Uttar Pradesh Chief Minister Akhilesh Yadav on Thursday wrote a letter to Prime Minister Narendra Modi urging him to fix subsidy on export of raw sugar at Rs 4,000 per tonnes to stabilise rate of the sugar.

"The subsidy on export of raw sugar should be fixed at Rs 4,000 per tonnes. The import duty of sugar should be hiked to 40% from the existing 25%. The move will help cane farmers of the state," Yadav said in a letter to the PM.

He said as the crushing season was about to end, any delay in decision to give subsidy in export and hike in import duty in this regard would will impact in non production of raw sugar by mills resulting in financial crisis.

The CM said UP had the highest cane area and was biggest cane producing state with 123 sugar mills and over 32 lakh family of cane farmers and two lakh labourers in the industry.

Due to poor financial condition of sugar mills, of outstanding Rs 19,388 crore dues in financial year 2013-14, 96.22 per cent dues could cleared and in the present fiscal only 62.33% due of farmers could be cleared by mills, he said.