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Cabinet approves Rs 3,500 crore subsidy for sugarcane farmers

The CCEC observed that sugarcane farmers sell their produce to sugar mills but they do not get their dues from the mill owners as they have surplus sugar stock

twitter-logoBusinessToday.In | December 16, 2020 | Updated 16:50 IST
Cabinet approves Rs 3,500 crore subsidy for sugarcane farmers

The Cabinet on Wednesday approved assistance of Rs 3,500 crore to sugarcane farmers. The fund would be directly credited into the accounts of the farmers. The government said that the decision would benefit 5 crore sugarcane farmers, their dependents, as well as 5 lakh workers employed in the sugar mills and related ancillary activities.

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the Rs 3,500 crore assistance.

"Cabinet has taken the decision to help farmers directly by depositing money of subsidy into their accounts. The subsidy will be given on 60 lakh tonnes of sugar exports at the rate of Rs 6,000 per tonne," said Union Minister Prakash Javadekar.

The CCEC observed that sugarcane farmers sell their produce to sugar mills but they do not get their dues from the mill owners as they have surplus sugar stock. The government would also facilitate the evacuation of this surplus sugar stock that will enable payment of dues of the sugarcane farmers.

"Government will incur about Rs. 3,500 crore for this purpose, and this assistance would be directly credited into farmers' accounts on behalf of sugar mills against cane price dues and subsequent balance, if any, would be credited to mill's account," said CCEC.

The subsidy would cover the expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport as well as freight charges on export of up to 60 lakh metric tonne of sugar.

Also read: Cabinet approves next round of spectrum auction; to help telcos boost network capacity

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