Buffer Stock For Sugar

New Delhi, November 26: | Updated: Nov 27 2002, 05:30am hrs
Union food and consumer affairs ministry has decided to create a buffer stock of 20 lakh tonne of sugar for a period of one year in order to mitigate the hardship of sugarcane growers. This will involve an outgo of Rs 412 crore from the Sugar Development Fund, according to an official press release.

An additional amount of Rs 374 crore will be released by banks on account of the buffer stock. These funds will be used exclusively for payment of cane price dues to sugarcane growers. The government has also decided to aggressively encourage sugar exports and to provide further assistance to sugar exporters in addition to the existing reimbursement of inland transport and freight charges.

Sugar industry is today in a difficult situation. For the last three seasons, the industry has been carrying increasingly large stocks. The carryover stocks from the 2001-02 sugar seasons are around 100 lakh tonne. .

The expected production in the current season is around 170 lakh tonne against domestic consumption of around 180 lakh tonne. Export is likely to be around 10 lakh tonne.