Govt approves assistance of Rs 5.5 per quintal for sugarcane farmers

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved financial assistance of Rs 5.5 per quintal for sugarcane farmers to help cash-starved millers clear cane arrears.

The assistance shall be paid directly to the farmers on behalf of the mills. It will be adjusted against the cane price payable due to the farmers against Fair and Remunerative Price (FRP) including arrears relating to previous years.  

“Subsequent balance if any, shall be credited into the mill’s account. Assistance shall be provided to those mills which will fulfil the eligibility conditions as decided by the government,” a ministry release has said.

Due to higher sugar production against the estimated consumption during the current sugar season 2017-18, the domestic sugar prices have remained depressed leading to accumulation of cane price dues of farmers exceeding Rs 19,000 crore.

In the last three months the government has increased customs duty on import of sugar from 50 percent to 100 percent and imposed reverse stock holding limits on producers of sugar for the months of February and March.

To facilitate and incentivize export of surplus sugar by sugar mills, Government has allowed Duty Free Import Authorization (DFIA) Scheme in respect of sugar.