May 2, 2018 / 7:16 AM / 22 days ago

India approves subsidy for cane growers to help sugar mills-govt source

NEW DELHI, May 2 (Reuters) - Indian cabinet approved on Wednesday a proposal to give subsidies to cane farmers for produce they sell to sugar mills, a government source said, as part of efforts to help growers and companies struggling with a glut.

Prime Minister Narendra Modi’s administration decided to give 55 rupees ($0.82) for every tonne of cane sold to the mills.

As a drop in local sugar prices to their lowest level in 28 months made it difficult for mills to pay farmers mandatory cane prices, a panel of ministers last month backed plans to give financial support to cane growers, an influential political lobby.

Reuters last month reported that the government was likely to subsidise an industry reeling from a supply glut and struggling to export because of low global prices. ($1 = 66.6775 Indian rupees) (Reporting by Mayank Bhardwaj; Editing by Malini Menon)

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