UPSC CSE – SYLLABUS: GENERAL STUDIES-3– Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution.

Sugar export subsidy issues

Sugar industry rooting for exports:

Mills reluctance:

Ethanol policy:

Unpaid subsidy an issue:

The central government is yet to release the export subsidy due to the mills and the total due is as high as Rs 6,900 crore. Individual mills had taken loans to facilitate exports and now they have to to pay interest to the banks. Unpaid interest of Rs 3,000 crore for maintaining buffer stock has also hit hard the balance sheet of mills.

Source: ”Indian Express”.


Discuss the issues regarding sugar export subsidy. Suggest appropriate measures needed to resolve them.