Centre okays Rs 3500-crore assistance for sugarcane farmers
The farmers in India are not getting their dues from the sugar mill owners as they have surplus sugar stock. To address this concern, the Government is facilitating the evacuation of surplus sugar stock.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved assistance of about Rs 3,500 crore for sugarcane farmers in India.
The country has nearly five crore sugarcane farmers (Ganna Kisan). The farmers sell their sugarcane to the sugar mills. However, the farmers are not getting their dues from the sugar mill owners as they have surplus sugar stock, the Cabinet Committee on Economic Affairs stated in a release.
To address this concern, the Government is facilitating the evacuation of surplus sugar stock. This will enable payment of dues of the sugarcane farmers. The 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, the CCEA said.
The CCEA stated that the subsidy aims at covering expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on the export of up to 60 LMT of sugar limited to Maximum Admissible Export Quota (MAEQ) allocated to sugar mills for sugar season 2020-21.
Pointing out that there are about five lakh workers employed in the sugar mills and ancillary activities, and their livelihood depends on the sugar industry, the CCEA stated that this decision will benefit the five crore sugarcane farmers and their dependents, as well as the five lakh workers employed in the sugar mills and related ancillary activities.