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MUMBAI, March 4 (Reuters) - India late on Monday notified an incentive of 3,300 rupees ($53.20) per tonne for production of raw sugar for exports as the world's second biggest producer of the sweetener tries to bring down its stockpile by promoting exports.
A cabinet committee on economic affairs last month approved the proposal and mills had been awaiting the notification.
Indian mills traditionally produce white sugar, but a global glut has made exports difficult. Exports of raws from the South Asian nation will eat into the share of top suppliers Brazil and Thailand.
The government will provide incentive for export of 4 million tonnes of raw sugar produced in the 2013/14 and 2014/15 sugar marketing years, that run from October to September, the notification said.
The incentive of 3,300 rupees will be applicable for exports in February and March. From April onwards, the incentive will be recalculated after every two months depending on the rupee-dollar exchange rate, it said.
Mills need to pay incentives to make cane payments to farmers, it added. ($1 = 62.0300 Indian rupees)
(Reporting by Rajendra Jadhav; Editing by Sunil Nair)
((rajendra.jadhav@thomsonreuters.com)(+91-22-6180-7153)(Reuters Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net))
Keywords: INDIA SUGAR/SUBSIDY