India approved a proposal to build a buffer stock of 4 million tonnes of sugar in the new marketing season starting from Oct. 1, CNBC Awaaz television channel reported on Wednesday, citing sources.
The government has also decided to keep minimum cane buying price for the next season steady, the television channel said.
Years of bumper cane harvests and record sugar production have hammered sugar prices in India, the world’s biggest consumer, making it hard for mills to pay money owed to farmers, who form an influential voting bloc.