Amid ongoing protests by farmers, the Cabinet Committee on Economic Affairs (CCEA) has approved assistance of about Rs 3,500 crore for sugarcane farmers (Ganna Kisan). The fund would be directly credited into the accounts of the farmers. The decision would benefit five crore sugarcane farmers, their dependents, as well as five lakh workers employed in the sugar mills and related ancillary activities. The Centre has also decided to export 60 lakh tons of sugar during the ongoing marketing year 2020-21 as part of its efforts to help them clear outstanding dues to sugarcane farmers.
Briefing media after the meeting, Information and Broadcasting Minister Prakash Javadekar said the Cabinet Committee on Economic Affairs (CCEA) has approved a subsidy of Rs 3,500 crore on exports of 60 lakh tonnes of sweetener and the subsidy amount will directly be given to farmers.The minister said both “sugar industry as well as sugarcane farmers are in crisis” because of high domestic production at 310 lakh tonnes as against the annual demand of 260 lakh tonnes. The decision will benefit 5 crore farmers, said Javadekar, who is also Union Environment Minister.
The CCEC observed that sugarcane farmers sell their produce to sugar mills but they do not get their dues from the mill owners as they have surplus sugar stock. The government would also facilitate the evacuation of this surplus sugar stock that will enable payment of dues of the sugarcane farmers.
The subsidy would cover the expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport as well as freight charges on export of up to 60 lakh metric tonne of sugar.
India, the world’s second-largest sugar-producing country, had to offer export subsidies during the past two years to reduce surplus stocks and help cash-starved sugar mills clear cane payment to growers.
“Thailand’s production is expected to be down this year, while Brazil’s crushing will only start in April 2021. From now till April, there is good export opportunity for India,” officials said.
In the previous marketing year 2019-20 (October-September), the government provided a lump sum export subsidy of Rs 10,448 per tonne, costing the exchequer Rs 6,268 crore. Mills exported 5.7 million tonnes of sugar against the mandatory quota of 6 million tonnes set for the 2019-20 season (October-September), according to official data.