New Delhi, May 9 (UNI) In an effort to help clear the dues of sugarcane farmers, which have accumulated to over Rs 20,000 crores, the Central government on Wednesday announced that it has decided to provide financial assistance at the rate of Rs. 5.50 per quintal of cane crushed in sugar season 2017-18 to sugar mills to offset the cost of cane.
According to a statement by the Ministry of Consumer Affairs, Food and Public Distribution, ”The assistance shall be paid directly to the farmers on behalf of the mills and be adjusted against the cane price payable due to the farmers against Fair and Remunerative Price (FRP) including arrears relating to previous years. ”
The total assistance would be about Rs 1540 crore which will directly benefit a large number of farmers and will help the sugar mills in a long way in discharging their liabilities on account of cane price dues of farmers, the ministry said.
”The said assistance of Rs.5.50 per quintal of cane crushed will be provided on the basis of actual cane crushed or inter se allocation of earlier estimated 2,800 LMT of cane to be crushed during 2017-18 sugar season, whichever is lower,” the ministry said.
The decision has been taken to clear the dues of sugarcane farmers that have accumulated to over Rs.20,000 crores.
”Due to higher sugar production against the estimated consumption during the current sugar season 2017-18, the domestic sugar prices have remained depressed since the commencement of the season. As a result, accumulated dues of farmers have reached to over Rs.20,000 crores,” the ministry said.