Cabinet approved Assistance of Rs. 3,500 crores for Sugarcane Farmers

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the assistance of about Rs. 3,500 crore for the sugarcane farmers (Ganna Kisan).

Key Facts

  • Presently, there are around five crore sugarcane farmers and their dependents in India.
  • Apart from that, there are around five lakh workers who are employed in the sugar mills and ancillary activities. Their livelihood depends on the sugar industry.
  • The subsidy will benefit the five crore sugarcane farmers and their dependents in the country.

How this fund will be utilised?

Currently, Farmers sell their sugarcane to the sugar mills. But they do not get their dues from the sugar mill owners because they have surplus sugar stock. Thus, to address this issue, the Government is facilitating the evacuation of surplus sugar stock. By doing do, the sugarcane farmers would be provided with their dues. For this purpose, the Government will incur about Rs. 3,500 crores. The compensation would be directly credited into farmers’ accounts. It will be credited on behalf of the sugar mills against the cane price dues and subsequent balance.

Aim of the subsidy

The subsidy is being provided with the aim to cover the expenses on marketing costs. It also includes the handling, upgrading and other processing costs. Costs of international transport, internal transport and freight charges on export of up to 60 LMT of sugar has also been included. These charges are limited to the Maximum Admissible Export Quota (MAEQ) which has been allocated to the sugar mills for 2020-21 sugar session.