Govt Announces Rs. 8,000-Crore Package For Sugarcane Farmers

The Union government on 04 June 2018 announced a package of more than Rs 8,000 crore aimed to provide relief to sugarcane farmers and to clear their dues. The package is part of the government’s efforts to address the ongoing agrarian crisis in the country and offset its political impact.

According to a government official, the package includes three elements. A buffer stock of 30 LMT (lakh metric tonnes) of sugar will be created with Rs 1,200 crore. This money will be directly transferred to accounts of sugarcane farmers. Rs 4,400 crore will be used to increase ethanol production to divert sugarcane away from sugar mills which are unable to dispose of their inventories. The government has also decided to ensure a minimum sale price of Rs 29/kg for sugar.

The region is dominated by sugarcane farmers who have been protesting against the non-payment of dues by sugar mills. According to media reports, pending arrears of sugarcane farmers in Uttar Pradesh alone are to the tune of more than Rs 12,000 crores. Govt Announces Rs. 8,000-Crore Package For Sugarcane Farmers TAccording to statistics from Centre for Monitoring Indian Economy, sugarcane production in 2017-18 was the third highest ever in the country at 35.5 million tonnes.

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