Sugarcane farmers to get the amount directly into their bank
accounts.
The central
government on Wednesday approved a subsidy of Rs 3,500 crore to sugar
mills for the export of around six million tonnes (MT) in the ongoing
2020-21 marketing season that started in October.
It also cleared
pending export subsidy of around Rs 5,360 crore, which will be passed on
directly into the bank accounts of farmers through an escrow account in a
week’s time.
Both the decisions
are meant to enable mills to make timely payment to sugarcane farmers in the
current year and clear their arrears, which according to government sources is
estimated to be around Rs 3,574 crore as on December 10.
The approval comes
at a time when thousands of farmers, many from sugarcane growing belts of
western Uttar Pradesh, are protesting against the three farm
Acts recently passed by the Centre.
The exports will
help the industry generate around Rs 18,000 crore in revenues at current
international prices, which will also help clear dues.
Both Prime
Minister Narendra Modi and Food Minister Piyush Goyal welcomed the decision,
saying it was taken in farmers’ interest.
The Cabinet
Committee on Economic Affairs (CCEA) has approved the subsidy at the rate of Rs
6 per kg for the current year, much lower than the Rs 10.50 per kg in the
2019-20 marketing year, keeping in view favorable international prices.
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