To provide relief to get sugarcane farmers, especially in Western Uttar Pradesh, the Modi government is set to announce a package of more than Rs 8000 crore. With an eye on upcoming Lok Sabha polls, the government is trying to woo the farmers ahead of the upcoming general elections 2019. The final decision on the announcement of this package will be decided in the Cabinet Committee on Economic Affairs (CCEA) meeting going to hold today. According to reports, Rs 1200 crore, a part of the package, will only be allotted for the creation of buffer stock of 30 LMT for which the money will be directly transferred to the sugarcane farmers accounts to ensure transparency.

The particular step under the scheme will facilitate the mills to clear longstanding dues of the farmers. Also, it will maintain the demand and supply of the sugarcane in the market. The sugarcane crisis played a key role in the results of Kairana bypoll, however, it is an issue of the whole country. According to reports, under the new scheme, the government will fix the minimum price of sugarcane at Rs 29 per kg which will help the clearance of sugarcane dues to the farmers.

Keeping in mind the retail prices of sugarcane, the government will try to maintain check and balance throughout the year. Under the scheme, a buffer stock of 30 LMT will be created aiming at fixing the minimum price for the sale of sugar so that sugarcane mills can clear dues to the farmers.  

However, this is not the first that government has tried to provide relief to the farmers, last month, the government had announced a Rs 1,500 crore subsidy for sugarcane farmers to help millers pay sugarcane payments. From last many years, the sugarcane mills are not able to clear longstanding dues of cane farmers.

As Uttar Pradesh is the biggest sugarcane producing state of the country, dues of more than Rs 12,000 crore dues are pending in the state. According to stats, the sugar industry impacts the livelihood of around 5 crore farmers and workers directly or indirectly associated with the agro-based industry.


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