Amid Farm Stir, Centre Approves Rs 3,500-Crore Sugar Export Subsidy

Business Standard Amid farm stir, Centre approves Rs 3,500-crore sugar export subsidy

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.