Government orders extension of assistance to clear dues of sugarcane farmers

The Union Government on May 9, 2018 issued orders for extending assistance to clear the dues of sugarcane farmers. Food and Public Distribution Ministry read that the government has decided to provide financial assistance of Rs 5.50 per quintal of cane crushed in sugar season 2017-18 to sugar mills to offset the cost of the cane.

Key Highlights:-
1. 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.
2. The approval for providing the monetary assistance was given by Cabinet Committee on Economic Affairs earlier this month.
3. The total assistance would amount to about Rs 1540 crore, which will directly benefit a large number of farmers and will help the sugar mills in the long run in discharging their liabilities on account of cane price dues of farmers.
4. It will be provided on the basis of actual cane crushed or inter se allocation of earlier estimated 2800 LMT of cane to be crushed during 2017-18 sugar season, whichever is lower.

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