- Expected to spend Rs 1674 crores on buffer stock
- Sugar mills will be able to repay Rs 15 thousand crore of sugarcane farmers
new Delhi. The government has given two relief to the sugar sector, giving relief to the two proposals. The Cabinet Committee on Economic Affairs (CCEA) approved the proposal to build 40 lakh tonnes of buffer stock on Wednesday. It is expected to cost Rs 1,674 crore. Sugar mills from buffer stock will help in repaying the arrears of the cane growers up to Rs 15,000 crore.
For the 2019-20 marketing year (October-September), the FRP of sugarcane is kept at Rs 275 per quintal. Last year also was the same price. FRP is the lowest price at which sugar mills have to purchase sugarcane from farmers.
In August last year, the government had made a buffer stock of 30 lakh tonnes of sugar by spending Rs 1,175 crore. So that the sugar mills could solve the crisis and they could get the dues of the farmers.
Existing marketing year 2018-19 (October-September) is expected to produce 3.29 million tonnes of sugar, while the annual demand in the country is just 2.6 million tonnes.