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Cabinet approves assistance of about Rs 3,500 crore for sugarcane farmers
New Delhi, December 17, 2020
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its approval for the assistance of about Rs. 3,500 crore for sugarcane farmers.
At present, there are close to five crore sugarcane farmers and their dependents in India. Besides, about five lakh workers are employed in the sugar mills and ancillary activities, an official press release said.
Farmers sell their sugarcane to the sugar mills. However, they do not get their dues from the sugar mill owners due to surplus sugar stock. To address this concern, the Government was facilitating the evacuation of surplus sugar stock, it said.
The release said the government will incur about Rs. 3,500 crore 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.
This 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.
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, the release added.