Rs 3,500-cr sop to sugar mills may help clear farmers’ dues
Item
Title
Rs 3,500-cr sop to sugar mills may help clear farmers’ dues
Description
NEW DELHI: The Cabinet on Wednesday approved Rs 3,500 crore subsidy to sugar mills for export of 60 lakh tonnes of the sweetener during the ongoing marketing year 2020-21 with the objective to help them clear outstanding dues of sugarcane farmers. This subsidy of nearly Rs 6 per kg will also help the industry liquidate stocks worth Rs 18,000 crore in the next 10-12 months over and above sales domestically. The government claimed the decision will benefit nearly five crore sugarcane growers as they will get subsidy directly into their accounts at a time when the government is trying to convince farmers protesting against the farm laws of its commitment to their welfare. “Industries availing this subsidy, which have cane payment due to farmers, will have to clear the arrears first,” an official said.The Rs 6 export subsidy has been fixed considering the international price of the sweetener, which is around Rs 25 a kg. The minimum sale price set by the government is Rs 31. Welcoming the decision, home minister Amit Shah tweeted, “This will benefit five crore sugarcane farmers and five lakh employees.”
Publisher
The Times of India
Date
2020-12-17
Coverage
India