NEW DELHI: Ahead of elections in Karnataka, the Union executive on Wednesday decided to immediately pay sugarcane farmers about Rs 1,540 crore to clear lower than a 10th of the exceptional that sugar mills owe to them.
Sugarcane farmers, who have now not been paid full quantity by way of sugar mills, will get Rs 5.5 consistent with quintal (of cane beaten) immediately in their financial institution accounts from the central executive this is willing to prevent an agrarian disaster developing in sugar generating states like Uttar Pradesh, Maharashtra and Karnataka.
The transfer would provide much-needed reduction to mills that are facing a lack of Rs Eight-Nine consistent with kg in sugar gross sales as a result of report manufacturing, resulting in an enormous cane arrear of about Rs 20,000 crore and out of that over Rs Eight,000 crore relates to UP and about Rs three,000 crore each and every to Maharashtra and Karnataka.
"The Cabinet Committee on Economic Affairs has given approval 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 cane, in order to help the mills clear cane dues of farmers," Union Minister Ravi Shankar Prasad told reporters right here.
The help could be paid immediately to the farmers on behalf of the mills, he said.
"Due to over production, there is liquidity problem with the millers," Prasad said, adding the overall subsidy outgo is estimated at Rs 1,540 crore.
The executive may even put positive stipulations on millers for changing into eligible for this monetary help.
Sugar manufacturing is estimated to go 30 million tonne (MT), an all-time prime, in the current 2017-18 marketing year (October-September) as towards 20.three MT in the previous year. The annual home demand is estimated at 25 MT.
Welcoming the decision, trade body ISMA's Director General Abinash Verma said this may provide a reduction to the millers as they're facing a lack of Rs Eight-Nine consistent with kg due to sharp fall in ex-mill sugar costs. The average price of manufacturing is Rs 35 consistent with kg whilst the promoting price is ready Rs 26 consistent with kg.
"The quantum of Rs 55 per tonne of sugarcane would work out to around Rs 1,550-1,600 crore for the current season," he said.
Verma termed the decision positive for the trade at the same time as mills are incurring a lot higher losses and was hoping that the federal government would provide further help to bail out the trade.
To clear cane arrears, the affiliation has been difficult that the federal government provide production-linked incentive to cane farmers because it was done in 2015-16 marketing year. In November 2015 too, the federal government had paid a production-linked subsidy of Rs four.50 consistent with quintal immediately to cane farmers.
"Due to raised sugar manufacturing towards the estimated intake during the present sugar season 2017-18, the home sugar costs have remained depressed for the reason that commencement of the season.
"Due to depressed market sentiment and crash in sugar costs, the liquidity place of sugar mills has been adversely affected, resulting in accumulation of cane price dues of farmers that have reached to greater than Rs 19,000 crore," the legit commentary said.
To stabilise sugar costs at cheap stage and help mills clear cane arrears, the federal government said it has already doubled sugar import duty to 100 consistent with cent and scrapped export duty to check sliding home costs. It has also asked mills to export 2 MT sugar.
Sugarcane farmers, who have now not been paid full quantity by way of sugar mills, will get Rs 5.5 consistent with quintal (of cane beaten) immediately in their financial institution accounts from the central executive this is willing to prevent an agrarian disaster developing in sugar generating states like Uttar Pradesh, Maharashtra and Karnataka.
The transfer would provide much-needed reduction to mills that are facing a lack of Rs Eight-Nine consistent with kg in sugar gross sales as a result of report manufacturing, resulting in an enormous cane arrear of about Rs 20,000 crore and out of that over Rs Eight,000 crore relates to UP and about Rs three,000 crore each and every to Maharashtra and Karnataka.
"The Cabinet Committee on Economic Affairs has given approval 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 cane, in order to help the mills clear cane dues of farmers," Union Minister Ravi Shankar Prasad told reporters right here.
The help could be paid immediately to the farmers on behalf of the mills, he said.
"Due to over production, there is liquidity problem with the millers," Prasad said, adding the overall subsidy outgo is estimated at Rs 1,540 crore.
The executive may even put positive stipulations on millers for changing into eligible for this monetary help.
Sugar manufacturing is estimated to go 30 million tonne (MT), an all-time prime, in the current 2017-18 marketing year (October-September) as towards 20.three MT in the previous year. The annual home demand is estimated at 25 MT.
Welcoming the decision, trade body ISMA's Director General Abinash Verma said this may provide a reduction to the millers as they're facing a lack of Rs Eight-Nine consistent with kg due to sharp fall in ex-mill sugar costs. The average price of manufacturing is Rs 35 consistent with kg whilst the promoting price is ready Rs 26 consistent with kg.
"The quantum of Rs 55 per tonne of sugarcane would work out to around Rs 1,550-1,600 crore for the current season," he said.
Verma termed the decision positive for the trade at the same time as mills are incurring a lot higher losses and was hoping that the federal government would provide further help to bail out the trade.
To clear cane arrears, the affiliation has been difficult that the federal government provide production-linked incentive to cane farmers because it was done in 2015-16 marketing year. In November 2015 too, the federal government had paid a production-linked subsidy of Rs four.50 consistent with quintal immediately to cane farmers.
"Due to raised sugar manufacturing towards the estimated intake during the present sugar season 2017-18, the home sugar costs have remained depressed for the reason that commencement of the season.
"Due to depressed market sentiment and crash in sugar costs, the liquidity place of sugar mills has been adversely affected, resulting in accumulation of cane price dues of farmers that have reached to greater than Rs 19,000 crore," the legit commentary said.
To stabilise sugar costs at cheap stage and help mills clear cane arrears, the federal government said it has already doubled sugar import duty to 100 consistent with cent and scrapped export duty to check sliding home costs. It has also asked mills to export 2 MT sugar.
Govt to pay Rs 1,540 cr to sugarcane growers on mills' behalf to help clear part arrears
![Govt to pay Rs 1,540 cr to sugarcane growers on mills' behalf to help clear part arrears]()
Reviewed by Kailash
on
May 03, 2018
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