It is reported by Reuters.

Late last year, India, the world’s biggest sugar producer behind Brazil, approved subsidies of 5,833 rupees ($79.87) per tonne to encourage cash-strapped mills to export 6 million tonnes of sugar in the current 2020/21 season.

The government subsidies for sugar exports stand at 4,000 rupees a tonne, the Ministry Of Consumer Affairs, Food And Public Distribution said on Thursday.

The new rate subsidies are applicable from Thursday, a senior government official involved with the decision-making said, asking not to be identified in line with official rules.

The previous subsidy rate spurred a flurry of overseas export deals, helping to convince dealers to contract to export 5.7 million tonnes of sugar in the 2020/21 season, trade sources said.

Higher sugar exports from India, also the world’s biggest consumer of the sweetener, cut back inventories at home and prop up domestic prices, which helps the country’s money-losing mills.