32 C
New Delhi
Tuesday 7 April 2020

Rs 5.50 per quintal subsidy for sugarcane farmers approved

Sugarcane arrears have touched about Rs 19,000 crore. We discussed this issue. There were several suggestions like a production-linked subsidy, sugar cess and reduction of GST on ethanol from 18% to 5%: Union Food Minister Ram Vilas Paswan

Editorials

In India

Lockdown to end on schedule, hints PM; list 10 KRAs, union ministers told

Today's meeting of the prime minister with his colleagues in the union ministries raises hope for the economy even amid the apprehension that the nation might not be able to break the chain of the COVID contagion by 14 April

Terrorist links of Tablighi Jamaat include Masood Azhar, Osama bin Laden

Maulana Masood Azhar, the founder of the terrorist group Harkat ul Mujahideen which underwent several name changes to finally become Jaish-e-Mohammed, is not only a member of the Tablighi Jamaat but also a once close associate of Osama bin Laden

New Delhi: The government today approved a production subsidy of Rs 5.5 per quintal for sugarcane farmers to help cash-starved millers clear cane arrears that have surged to about Rs 20,000 crore due to sharp fall in sugar prices on record production.

The Cabinet Committee of Economic Affairs has approved a production-linked subsidy of Rs 55 per tonne (Rs 5.5 per quintal) for cane farmers, sources said.

The move also comes at a time when Karnataka, a leading sugarcane producing state, is going for polls on May 12.

Welcoming the decision, industry body ISMA’s Director General Abinash Verma said the industry is facing huge losses due to fall in ex-mill sugar prices.

He said the subsidy amount could be Rs 1,500-1,600 crore on the basis of sugarcane crushed by the

mills in the current 2017-18 marketing year (October-September).

Last month, an informal ministerial panel had explored options such as production-linked subsidy, imposition of sugar cess and reducing GST on ethanol to help sugar mills clear dues to cane farmers.

India’s sugar production touched an all-time high of 29.98 million tonnes (MT) till April 15 in the current season on higher cane output, leading to a surge in arrears to farmers at over Rs 20,000 crore, according to ISMA.

Sugar output of India, the world’s second-largest producer, stood at 20.3 MT in the 2016-17 marketing year. The annual domestic demand is estimated at 25 MT.

“Sugarcane arrears have touched about Rs 19,000 crore. We discussed this issue. There were several suggestions like a production-linked subsidy, sugar cess and reduction of GST on ethanol from 18% to 5%,” Food Minister Ram Vilas Paswan had told reporters on April 23 after the ministerial panel meet.

The Centre has already doubled sugar import duty to 100% and scrapped export duty to check sliding domestic prices. It has also asked mills to export 2 MT sugar.

To clear cane arrears, the association has been demanding that the government provide production-linked incentive to cane farmers as it was done in the 2015-16 marketing year.

In November 2015 too, the government had paid a production-linked subsidy of Rs 4.50 per quintal directly to cane farmers to help millers clear arrears.

Recently, ISMA had said sugar prices have been under severe pressure in the last 4-5 months and have fallen by Rs 9 per kg across the country. As compared to the cost of production, the ex-mill sugar prices are around Rs 8 per kg lower and the sugar mills are incurring substantial losses.

Coronavirus worldwide update, with focus on India, LIVE

Since the facts and figures related to the novel coronavirus disease 2019 (nCOVID-19, COVID-19 or COVID) are changing by the minute, Sirf News has begun this blog to keep the readers updated with information coming from authentic sources

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Articles

China Is Guilty, But How Will World Retaliate?

The attack has to be calibrated as the world has invested heavily in China and that country, in turn, has markets worldwide, making your own economy vulnerable when you take measures against Beijing

Sewa In COVID Times: Living ‘Service Before Self’ Credo

Sewa International volunteers were first off the starting block, setting up non-medical helplines for the four regional areas — West Coast, East Coast, Midwest, and Southwest — for a coordinated national response, where people can call in for assistance

United States & India: Same COVID, Different Prescriptions

The different social structures, experiences in the leaders of the two countries, variation in the degree of political capital, etc make India and the US react differently to the global COVID pandemic

China Is Guilty, But How Will World Retaliate?

The attack has to be calibrated as the world has invested heavily in China and that country, in turn, has markets worldwide, making your own economy vulnerable when you take measures against Beijing

Sewa In COVID Times: Living ‘Service Before Self’ Credo

Sewa International volunteers were first off the starting block, setting up non-medical helplines for the four regional areas — West Coast, East Coast, Midwest, and Southwest — for a coordinated national response, where people can call in for assistance

United States & India: Same COVID, Different Prescriptions

The different social structures, experiences in the leaders of the two countries, variation in the degree of political capital, etc make India and the US react differently to the global COVID pandemic

For fearless journalism

%d bloggers like this: