The subsidy is expected to help cut large stockpiles lying with mills.

The Centre has issued an official order to give its money-losing sugar mills an incentive of Rs. 4,000 a tonne in order to export up to 1.4 million tonnes of the raw variety, a statement on a government website showed on Thursday.

Prime Minister Narendra Modi's cabinet on Feb. 19 agreed to give the subsidy to help cut large stockpiles lying with mills after five straight years of surplus output.

According to the order, only private and cooperative sugar mills having the capacity to produce ethanol can avail the incentive.

 

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