Cabinet Committee on Economic Affairs has approved 3,500 crore subsidy for sugar farmers, said Union Minister Prakash Javadekar on Wednesday.At a press conference, he said 60 lakh tonnes of sugar will be exported. He added that 5 crore sugarcane farmers will benefit from Cabinet’s decision on sugar and that farmers will get subsidy directly in their account.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 ₹6,000 per tonne, the minister said.
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. To address this concern, the Government is facilitating the evacuation of surplus sugar stock. This will enable payment of dues of the sugarcane farmers. Government will incur about 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 CCEA in a statement. 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 export of upto 60 LMT of sugar limited to Maximum Admissible Export Quota (MAEQ) allocated to sugar mills for sugar season 2020-21.
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