With a view to facilitate export of sugar during the sugar season 2020-21 and thereby improving the liquidity position of sugar mills enabling them to clear cane price dues of farmers for sugar season 2020-21, Central Government has approved Rs. 3500 crores for providing assistance to sugar mills for expenses on marketing costs including handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of sugar.

In order to ensure that the assistance is directly credited into the accounts of farmers, the sugar mill shall open a separate no-lien account in a nationalized bank/cooperative bank and furnish to that bank the list of farmers along with bank accounts details and extent of cane price dues payable to the farmers for the sugar season 2020-21 and cane price arrears of previous sugar seasons, duly certified by the Cane Commissioner / Director of Sugar of the state concerned. The bank shall credit the amount of assistance to the farmers’ accounts on behalf of the mills against cane dues payable and subsequent balance, if any, shall be credited into mill’s account.

The decision will improve the liquidity position of sugar mills and enable them to clear cane price dues of farmers. There are about 5 crore sugarcane farmers including their families, which will be benefited by this decision.

This information was given in a written reply by the Union Minister of State for Consumer Affairs, Food and Public Distribution, Shri Danve Raosaheb Dadarao in Lok Sabha today.

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