Union Cabinet Approves Extension of Subsidised Sugar Scheme and Other Schemes

The Union Cabinet has recently given its approval to a series of key economic decisions, including the extension of several schemes such as the Subsidised Sugar Scheme. These initiatives are expected to significantly influence India’s economy and provide support to the most vulnerable sections of society.

Subsidised Sugar Scheme

Union Cabinet has extended the Subsidised Sugar Scheme, which aims to provide sugar at subsidized rates to Antyodaya Anna Yojana (AAY) families, until 31st March 2026. This scheme is designed to improve the health of the poorest citizens by supplementing their diet with sugar. The Central Government provides a subsidy of Rs.18.50 per kg per month of sugar to AAY families in participating States. The extension of this scheme is will provide benefits exceeding Rs.1850 crore during the period of the 15th Finance Commission (2020-21 to 2025-26). In addition to this scheme, the Government of India also offers free ration under the Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) and sells essential food items like ‘Bharat Atta,’ ‘Bharat Dal,’ ‘Bharat Rice‘, tomatoes, and onions at affordable prices.

Rebate Scheme for Apparel/Garment Exports

The Cabinet has approved the continuation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for export of apparel and garments until 31st March 2026. The extension of this scheme is expected to provide a stable policy environment for long-term trade planning, particularly in the textiles sector. Textile products not covered under the RoSCTL can avail benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP).

Animal Husbandry Infrastructure Development Fund

The Animal Husbandry Infrastructure Development Fund (AIHDF) has also been extended for another three years, up to 2025-26. The AIHDF aims to encourage investments in dairy processing, product diversification, meat processing, animal feed plants, and breed multiplication farms. The Government of India will provide a 3% interest subvention for 8 years with a two-year moratorium for loans up to 90% from scheduled banks and other financial institutions.


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