Govt okays Rs 5.5 / quintal aid for cane growers to help mills clear dues

The decision also comes at a time when Karnataka, a leading sugarcane producing state, is going for legislative assembly polls on May 12

The government on Wednesday approved financial assistance of Rs 5.5 per quintal for cash-short sugar mills to help them clear their rising payment arrears to cane farmers, now at about Rs 200 billion, in the wake of record production and a slide in sugar prices.

The total expenditure from this decision would be Rs 15.4 billion. The money will be paid directly to farmers on behalf of the mills which go along, to be adjusted against the cane price and arrears payable. The assistance shall be paid only to those mills which fulfill the eligibility conditions as decided by the government.

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