- The Central govt announced measures to revive the sugar industry that has been reeling under starved-liquidity and decreased prices.
- A mismatch between the cane prices and sugar cost had strained liquidity. Also, predetermined cane prices in UP, which produces about 1/3rd of sugar production, have resulted in losses.
- The measures include:
- Hike in the import duty from 15% to 40%.
- Increasing the blend of ethanol in petrol from 55% to 10%. Ethanol is a by-product of sugar manufacturing.
- Incentives have been launched to improve export. This will help deal with the surplus condition.
- Read at: http://www.thehindu.com/todays-paper/tp-business/extension-of-export-sops-comes-as-sweetener-for-sugar-industry/article6143358.ece
Exams Perspective:
- Ethanol
- Jhatropa
- Measures to revive Sugar Industries