Cabinet approves assistance of about ₹ 3,500 crore for sugarcane farmers (Ganna Kisan)

This assistance would be directly credited into farmers’ accounts

Decision will benefit the five crore sugarcane farmers (Ganna Kisan) and their dependents, as well as the five lakh workers employed in the sugar mills and related ancillary activities

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has approved assistance of about ₹ 3,500 crore for sugarcane farmers (Ganna Kisan).

Currently, there are close to five crore sugarcane farmers (Ganna Kisan) and their dependents in India. In addition to this, there are about five lakh workers employed in the sugar mills and ancillary activities; and their livelihood depends on the sugar industry.

Farmers sell their sugarcane to the sugar mills, however the farmers are not getting their dues from the sugar mill owners as they have surplus sugar stock. To address this concern, the Government is facilitating the evacuation of surplus sugar stock. This will enable payment of dues of the sugarcane farmers. Government will incur about ₹ 3,500 crore for this purpose, and this assistance would be directly credited into farmers’ accounts on behalf of sugar mills against cane price dues and subsequent balance, if any, would be credited to mill’s account.

This subsidy aims at covering expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of upto 60 LMT of sugar limited to Maximum Admissible Export Quota (MAEQ) allocated to sugar mills for sugar season 2020-21

This decision will benefit the five crore sugarcane farmers and their dependents, as well as the five lakh workers employed in the sugar mills and related ancillary activities. 

Direct credit to farmers' accounts for cane-price dues to restore cash flow and support sugar sector exports and marketing costs. The Cabinet approved a scheme permitting direct credit to farmers' bank accounts on behalf of sugar mills to settle cane price dues, with any subsequent balance credited to mills, funded by government expenditure to facilitate evacuation of surplus sugar stock and to cover marketing, handling, processing and transport costs associated with exports within the Maximum Admissible Export Quota for the 2020-21 season.