Incentives approved for sugar cane, cotton, jute farmers

Cabinet Committee on Economic Affairs (CCEA) approved several measures to support farmers of cotton, sugar cane and jute.

Key Points

  • CCEA increased the price of ethanol extracted from sugar cane juice to blend it with petrol.
  • Ethanol blending with petrol is expected to reach 10% by 2022 and 20% by 2025.
  • CCEA has also increased the rate for ethanol extracted from C-heavy molasses.
  • Oil marketing companies purchase ethanol from distilleries and sugar mills at the rate set by Government.
  • Ethanol blending programme reduced the dependence on crude oil imports.

What is the implication of price increase?

Increase in price of ethanol is expected to reduce dues of the mills in payment to sugar cane farmers.

Price support to CCI

CCEA also approved a committed price support of Rs. 17,408.85 crore for the Cotton Corporation of India (CCI). Price support will be provided as reimbursement for its losses occurred in past seven years in procuring crops from farmers at minimum support prices (MSP).

Norms for Jute in packaging

CCEA approved reservation norms for mandatory use of jute in packaging. With this approval, 100% of food grains and 20% of sugar are required to be packed in jute bags. In the year 2020, such reservation consumed two-thirds of the total raw jute production.

Cotton Corporation of India Limited (CCI)

Cotton Corporation of India Limited is engaged in diverse activities related to trade, procurement, and export of cotton. It is a public sector agency which is responsible for equitable distribution of cotton across different constituents of the industry. CCI was incorporated on July 31, 1970 under Companies Act 1956.


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