(LiveMint)
Concerned about record cane arrears and the prospect of a domestic sugar glut worsening further, the government is considering offering financial assistance of around Rs 5,500 crore in the next marketing year, starting October, to assuage the pains of both farmers and mills, sources told FE.
As part of the proposal, expected to be taken up by the Cabinet Committee on Economic Affairs on Wednesday, the government could offer Rs 13.88 per quintal of cane directly to farmers for supplies of the raw material to mills, said the sources. A similar assistance of Rs 5.5 per quintal was provided earlier this year. Separately, an aid of Rs 1,000-3,000 per tonne of sugar could be offered this time around to mills for transporting the sweetener, depending on distance from ports.
