The Union Cabinet may on Wednesday consider a proposal to provide export subsidy worth Rs 3,600 crore to sugar mills for the marketing year 2020-21, as part of its efforts to help them clear outstanding dues to sugarcane farmers, according to sources.

The food ministry has proposed Rs 3,600 crore subsidy for exports of 60 lakh tonnes of sugar in the marketing year 2020-21 (October-September), they added. The sources said the proposal is likely to be taken up by the Cabinet in its meeting on Wednesday (December 16).

In the previous marketing year 2019-20, the government provided a lump sum export subsidy of Rs 10,448 per tonne, costing the exchequer Rs 6,268 crore. The ministry has proposed lower export subsidy for the current marketing year 2020-21.