Government Allocates Rs 15,948 Crore to Sugar Mills to Clear Sugarcane Price Dues

In a bid to boost the liquidity of sugar mills and facilitate the clearance of sugarcane price dues owed to farmers, the central government has disbursed approximately Rs 15,948 crore across various schemes over the past five years until January 31. This significant financial injection was revealed during a parliamentary session on February 9, underscoring the government's commitment to supporting the agricultural sector.

Schemes Aimed at Boosting Sugar Mills' Liquidity

The schemes implemented by the central government encompass a range of initiatives geared towards improving the financial health of sugar mills. Among these schemes are the establishment and maintenance of a buffer stock of 30 lakh tonnes of sugar, initiated from July 2018 to June 30, 2019. Additionally, assistance schemes tailored for defraying expenditures related to internal transport, freight, handling, and other charges associated with sugar export have been rolled out for various sugar seasons.

Focus on Export Facilitation

Acknowledging the crucial role of sugar exports in maintaining market equilibrium, the government has provided assistance to sugar mills for expenses incurred on marketing, handling, upgrading, processing, and internal transport and freight charges for multiple sugar seasons. However, despite these efforts, the export of sugar, encompassing raw, refined, and white varieties, has been constrained, with exports placed under a restricted category.

In a move to streamline export procedures and enhance connectivity between exporters and relevant stakeholders, the government has initiated the development of a new online platform. This platform aims to serve as a comprehensive hub, offering information on trade events, Free Trade Agreements (FTAs), and facilitating interactions with Indian Missions abroad and export promotion councils.

Trade Dynamics with Australia

India's trade relations with Australia have witnessed notable developments, as highlighted by recent import-export data. While imports of wines and vermouth from Australia witnessed a slight decline, India's exports to Australia experienced a significant uptick during the April-December 2023 period, resulting in a notable reduction in the trade deficit.

The India-Australia Economic Cooperation Trade Agreement (Ind-Aus ECTA), which came into effect in December 2022, underscores the commitment of both nations to fostering robust economic ties. This agreement is expected to further catalyze bilateral trade and investment, opening up new avenues for collaboration across various sectors.