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After Centre government, Maharashtra government gives subsidy on sugar export

After the central government offered Rs4,000 subsidy on every tonne of raw sugar to be exported, the Maharashtra government has also decided to give Rs1,000 subsidy on an equal amount of the produce. Hence, the total subsidy per tonne of sugar exported will now be Rs5,000.

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After the central government offered Rs4,000 subsidy on every tonne of raw sugar to be exported, the Maharashtra government has also decided to give Rs1,000 subsidy on an equal amount of the produce. Hence, the total subsidy per tonne of sugar exported will now be Rs5,000.

This move will help increase export as well as give relief to the cash-starved sugar industry and farmers. "The proposal was discussed in the cabinet. In the next meeting, it will be brought in for final sanction," said a senior BJP minister, requesting anonymity.

The crucial decision of giving subsidy came after Nationalist Congress Party (NCP) president Sharad Pawar requested prime minister Narendra Modi to address the sugar export issue immediately. On a visit to Baramati recently, Modi had promised to look into the matter.

Chief minister Devendra Fadnavis had also discussed this issue in the last cabinet meeting. After the final sanction from the state finance department, the arrears to sugarcane farmers will be paid.

Presently, India has a stock of 7.2 million tonnes of sugar and the requirement for the next three months is only 6 million tonnes. The country, however, does not have infrastructure to stock the excessive sugar. "The excessive sugar can be exported. Farmers will get good rates by exporting it," said farmer leader Vijay Jawandia.

Congress and the NCP had stalled the house several times during the winter assembly session in Nagpur demanding good price for sugarcane growing farmers.

A political observer said that the centre and state acted immediately after the Modi-Pawar meeting, which indicates that Pawar's word still counts and has value in the corridors of power. "State ministers, including chief minister Devendra Fadnavis met union finance minister Arun Jaitely several times to resolve the sugarcane farmers' issue, but things were ignored. Once Pawar told Modi about the problem, it was resolved. This is what is called Pawar's power play," he stated.
 

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