CCEA approves financial assistance to sugar mills for clearing cane dues of farmers

The Cabinet Committee on Economic Affairs (CCEA) has approved proposal to provide financial assistance of Rs. 5.50 per quintal of cane crushed in sugar season 2017-18. It will help to sugar mills to offset the cost of cane which will inturn help sugar mills to clear cane dues of farmers.

Key Facts

The assistance will be paid directly to farmers on behalf of mills. It will be adjusted against cane price payable due to farmers against Fair and Remunerative Price (FRP) including arrears relating to previous years.  Moreover it will also credit subsequent balance if any into the mill’s account. Mills fulfilling eligibility conditions as decided by the Government will be given assistance.


The sugar prices in domestic market have remained depressed since commencement of the season due to higher sugar production against estimated consumption during the current sugar season 2017-18. Due to depressed market sentiments and crash in sugar prices, liquidity position of sugar mills also have been adversely affected, leading to accumulation of cane price dues of farmers which have reached to more than Rs.19,000 crore. Government has taken various steps in recent times in order to stabilize sugar prices at reasonable level and to improve liquidity position of mills thereby enabling them to clear cane price dues of farmers.



Latest E-Books