Centre approves Rs 5,500crore package for sugar mills

New Delhi: In a major relief to sugarcane growers and mill owners, the Centre on Wednesday approved a Rs 5,500 crore package for the sugar industry that includes over two-fold jump in production assistance to growers and transport subsidy to mills for export up to 5 million tonnes in the marketing year 2018-19.

The Cabinet Committee on Economic Affairs approved the food ministry’s proposal that seeks to address the surplus domestic stock of sugar and help mills in clearing huge cane arrears of around Rs 13,000 crore.

The CCEA approved the total assistance of Rs 5,500 crore to support the sugar sector by wake of offsetting cost of cane and to facilitate export of sugar from the country, thereby improving liquidity of the industry enabling them to clear cane price arrears of farmers, official sources said.

The total package is of Rs 5,538 crore, of which Rs 1,375 crore pertains to transport subsidy to millers and the remaining amount will be credited directly to sugarcane growers.