Govt approves over Rs 1,100 crore subsidy for cane farmers


New Delhi: In the first ever direct subsidy payment to farmers, the government on Wednesday decided to pay sugarcane growers Rs 4.50 per quintal for the cane they will sell to loss-making millers, a move that will cost Rs 1,147 crore to the exchequer.


The Cabinet headed by Prime Minister Narendra Modi decided to give a production-linked subsidy directly to cane growers, as export subsidy, which was provided in the last two sugar seasons 2013-14 and 2014-15 to millers, was questioned by many countries at the WTO.


The decision was hailed by the industry body ISMA, which said that millers’ cane price liability would reduce by about Rs 1,100 crore, thus partly compensating their losses.


Related Posts Plugin for WordPress, Blogger...