Maharashtra plans to buy state's one-fourth sugar output to support prices

India's second-biggest sugar producer Maharashtra plans to buy a quarter of the state's output to arrest falling prices for the sweetener, a state minister told Reuters, a move that would require $1 billion and leave mills to cover storage costs.

The government purchase plan - which the state would need to approve in the next cabinet meeting - would help Maharashtra sugar mills pay dues to sugar cane farmers that have risen to more than Rs 30 billion ($470 million). "We are planning to buy 25 percent of the sugar production.....

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