Centre approves Rs 3,500 cr for sugar mills for clearing dues to farmers
It will improve the liquidity position of sugar mills and enable them to clear cane price dues of 5 crore farmers in the country
In a move that could benefit sugar growing farmers in the county, the Centre has approved Rs 3500 crore which would improve the liquidity condition of sugar mills and their efforts in clearing dues of farmers for the 2020-21 season.
“The Central government has approved Rs. 3500 crores for providing assistance to sugar mills for expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of sugar,” Minister of State for Consumer Affairs, Food and Public Distribution, Danve Raosaheb Dadarao said in written reply to a question in the Lok Sabha on Tuesday.
“In order to ensure that the assistance is directly credited into the accounts of farmers, the sugar mill shall open a separate no-lien account in a nationalized bank or cooperative bank and furnish to that bank the list of farmers along with bank accounts details and extent of cane price dues payable to the farmers for the sugar season 2020-21 and cane price arrears of previous sugar seasons, duly certified by the Cane Commissioner and the Director of Sugar of the state concerned,” the Minister said.
He also maintained that “the bank shall credit the amount of assistance to the farmers’ accounts on behalf of the mills against cane dues payable and subsequent balance, if any, shall be credited into mill’s account.”
“The decision will improve the liquidity position of sugar mills and enable them to clear cane price dues of farmers. There are about 5 crore sugarcane farmers including their families, which will be benefited by this decision,” the Minister said.