Cabinet clears another Rs 55-bn bailout package for sugar mills

Package includes direct assistance of Rs 41.63 bn to farmers linked to 5 mn tonnes export

With sugarcane arrears stubbornly remaining around Rs 130 billion ahead of the new crushing season that begins next month, the central government on Wednesday approved a fresh Rs 55.38-billion package for the sugar industry of which almost 75 per cent will be directly paid to growers provided mills export 5 million tonnes of the sweetener. 

To facilitate the exports, a transport subsidy amounting to Rs 13.75 billion was also approved as part of the relief package.  

The transport subsidy will be given at the rate of Rs 1,000 a tonne to mills located within 100 km from ports, Rs