August 2, 2015 7:49 AM

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PM favours export of sugar surplus; calls for more efforts to increase ethanol blending of fuel

Prime Minister Narendra Modi has favoured raising sugar exports to liquidate surplus stocks because of low domestic demand. Chairing a high level meeting to review issues related to the sector in New Delhi yesterday, Mr. Modi called for more efforts to increase ethanol blending for the benefit of sugar sector. AIR correspondent reports during the meeting, long-term measures with regard to sugar sector were also discussed. The meeting was attended by Union Ministers Arun Jaitley, Radha Mohan Singh, Ram Vilas Paswan, Nirmala Sitharaman and senior officers from different Ministries. <br/><br/> <br/>Sugar industry, which owes about 14,000 crore rupees to cane farmers, is unable to make payment as it is facing severe liquidity crunch on account of surplus production that has resulted in low prices of sugar in the domestic market. Prime Minister emphasized that the farmers' interest be kept foremost at all times and issues related to sugar sector should be monitored regularly. He also reviewed the progress with regard to 6,000 crore rupees incentive package approved by the government in June this year.

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