The Cabinet Committee on Economic Affairs has approved ₹Rs 3.5 billion subsidy for sugar producers, Union Minister Prakash Javadekar said on Wednesday.
At a press conference, he said that 60 lakh tonnes of sugar will be exported.
He added that the 5 million rupee sugar cane farmers will benefit from the Cabinet decision on sugar and that the farmers will receive a subsidy directly into their account.
“The cabinet has made the decision to directly assist farmers by depositing grant money in their accounts. The grant will be awarded to 60 lakh tonnes of sugar exports at a rate of ₹6,000 per ton, “said the minister.
“Farmers sell their sugar cane to sugar mills, however farmers do not receive their quotas from mill owners because they have surplus stocks of sugar. To address this concern, the Government is facilitating the evacuation of sugar stocks. surplus sugar. This will allow the payment of sugarcane fees. The government will incur ₹Rs 3,500 million for this purpose, and this assistance would be credited directly to the farmers’ accounts on behalf of the sugar mills against the cane price quotas and the subsequent balance, if any, would be credited to the mill account “CCEA said in a statement.
This grant is intended to cover marketing expenses, including handling, improvement and other processing costs and international and internal transportation costs and export freights of up to 60 LMT of sugar limited to the Maximum Allowable Export Quota (MAEQ) assigned to sugar mills. 2020-21 season.
This decision will benefit Rs.5 million sugarcane farmers and their dependents, as well as Rs.5 million workers employed in sugar mills and related ancillary activities, CCEA said.
The CCEA also approved the revised cost estimate of the Northeast Region Power System Improvement Project for six states to strengthen intrastate transmission and distribution systems, Javadekar said.
2,100 km of additional transmission lines, 36 new substations will be built in six northeastern states. “New 2,100 km transmission lines and 2,000 km distribution lines will be part of the plan that will be financed equally by the government and the World Bank,” Javadekar said.
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