Cabinet defers Rs 45 bn plan for sugar production assistance to next week

The Union Cabinet did not consider on Wednesday Rs 45 billion plan to more than double the production assistance paid to sugarcane farmers and transport subsidy to sugar exporting mills, sources said.

The Cabinet Committee on Economic Affairs (CCEA) may take up the food ministry's proposal next week, they added.

The ministry has proposed sharp increase in production assistance to farmers to Rs 13.88 per quintal for 2018-19 marketing year (October-September) from Rs 5.5 at present.

The proposal to raise production assistance and transport subsidy of up to Rs 3,000 per tonne to mills for exports of five million tonnes of surplus sugar is part of the government plan to clear more than Rs 135 billion arrears sugar mills have towards farmers.

On Tuesday, sources had said the government will have to bear about Rs 45 billion on account of these measures to help sugar mills and cane farmers.