Business Line reports the central govt will give export subsidies and compensation to help sugar mills tackle their 145 lakh tonnes of sugar inventory.
The decision is seen as a move to win over the sugar cooperative sector in Maharashtra which will go to the polls soon.
Sources familiar with the sugar cooperative sector say given the sector’s ability to provide funds for election campaigns no govt. can afford to rub it the wrong way.
In Maharashtra, sugarcane is a source of livelihood to 2.5 crore people in rural areas. Nearly 1.6 lakh workers get absorbed in the industry, while eight lakh workers are employed in harvesting and transport operations every year.