The Cabinet Committee on Economic Affairs (CCEA) has approved a new formula to calculate production subsidy to sugar mills for the ongoing 2015-16 season after taking into account lower sugar production and exports.<br/><br/>To address liquidity stress in the sugar industry and facilitate timely payment of cane arrears, the Centre last year had announced a subsidy of Rs 4.50 per quintal of cane crushed during October 2015-September 2016 season. <br/><br/>The condition set was that mills meet the export quota of four million tonnes and ethanol blending target.<br/><br/>The subsidy scheme has now been discontinued and the government is yet to make payments to mills. <br/><br/>As per official statement, the CCEA has approved the revision in the export quota and ethanol supply target for calculating the production subsidy.