Subsidy supply to sugar mills will be now based on real sugar export data and ethanol supply, as decided by Cabinet. By doing this, it will assist the mills to pay the farmers on time, said by government. This move also simplifies the procedure of getting jute bags for food texture by giving the Jute Commissioner the ability to take out the task removing the complex routine of passing through multiple ministries and bodies along with the directorate general of supplies and disposals.
on the grounds of estimated exports and ethanol yield, Sugar subsidy was given previously. due to drought the production in past was lower. The states because of this ethanol supply targets and had lowered exports.
As per the actual quantity supplied to the oil companies that blend it with petrol, Supply targets will be modify according to that. In the last year Sugar supply has exceeded demand, lowering the costs and reduce into the earnings of the factories. Arrears for the cane have increased and so the government to exact action to solve this problem by giving incentive on raw sugar export. By the soft loan scheme, Financial help is given to mills which enables sugar mills to supply ethanol. This happens under Ethanol Blending Program (EBP) that aspires to increase monetary health of sugar mills so they clear cane price arrears of farmers.