Cabinet extends subsidy schemes for sugar

The union cabinet on Thursday approved the extension of three schemes towards incentivising exports of apparel, providing sugar subsidy, and energizing investments in animal husbandry activities.

It also approved the signing and ratification of a bilateral investment treaty with the UAE.

The scheme for a rebate of state and central taxes and levies (RoSCTL) for the export of apparel, and a sugar subsidy scheme for Antyodya Anna Yojna (AAY) families were extended for two years up to 31 March 2026. The animal husbandry infrastructure development fund (AHIDF) has been extended for another three years, also till 31 March 2026.

An official statement said the extension of the RoSCTL scheme will provide a stable policy regime to help in long-term trade planning, more so in textiles where orders can be placed in advance for long-term delivery.

RoSCTL compensates exporters by way of rebates for state and central taxes and levies in addition to the duty drawback scheme on the export of garments and made-ups. The levies include value-added tax on fuel used in transportation, captive power, farm sector, mandi tax, duty of electricity, stamp duty on export documents, embedded SGST paid on pesticides, fertilizers, among others used in production of raw cotton, purchases from unregistered dealers, and coal used in production of electricity and inputs for transport sector.