Govt mulls over extending sugar subsidy by a year

New Delhi, Sept 20 (UNI) To encourage exports, the government today said it may extend the existing domestic freight subsidy given to sugar mills by a year.

''The Government may extend the subsidy given to sugar mills by a year,'' Agriculture Minister Sharad Pawar told reporters on the sidelines of a conference here.

He said his Minitry will consult with the Commerce Ministry on export subsidy to sugar companies, as some countries have objected to it and the matter has been referred to the WTO.

''We need to decrease domestic sugar stocks and to do that we need to sell sugar in foreign markets. We will have to see to that mills get enough support to export,'' Mr Pawar said.

Mr Pawar also said he did not favour a ban on trade in rubber futures to curb prices.

Earlier this year, the government banned new wheat and rice futures contracts to tame rising prices.

UNI