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Unique experiment! Yogi Adityanath govt provides sugar in lieu of money to sugarcane farmers

Giving particulars, Bhoosreddy stated mills will distribute sugar to solely prepared cane farmers and it will be topic to sale quota allotted for the month to the mill involved by the Government of India.

With farmers’ cane dues rising to over R12,500 crore and sugar manufacturing hitting the 110 lakh-tonne mark in Uttar Pradesh, the Yogi Adityanath authorities has provide you with a singular experiment of permitting sugar mills to offer sugar to prepared cane farmers in lieu of their steadiness cane worth for the present season. The farmers can take one quintal sugar per thirty days until June.

Talking to FE, principal secretary, excise and sugar trade and cane improvement, Sanjay R Bhoosreddy stated this association has been made in face of the lockdown. “The reason behind this experiment is that both the farmers and sugar mills are stressed and their interests have to be looked into. Institutional buying of sugar has stagnated due to the lockdown and OMCs are also not able to lift ethanol, as the sale of petrol has been heavily impacted. This has hit the mills’ liquidity in a big way and they are not able to clear the cane dues to the farmers. At the same time, farmers have been facing problems of liquidity too, and have been demanding that if not cash, they be paid in kind. This effort is to help both keep afloat in these stressful times,” he stated, including that each the trade and the farmers are on board on this.

As per the federal government’s determination, these farmers who’re prepared to take sugar in lieu of their cane worth dues could be allowed to take one quintal sugar per thirty days for 3 months until June on the lowest worth of the day, plus GST, and the quantity could be settled from their general dues. If no sugar has been bought on that day, yesterday’s lowest worth could be relevant. The prepared farmers must use his personal transport to hold the sugar and they won’t get any extra transportation price for it. The GST could be deposited by the mills to the state treasury.

Giving particulars, Bhoosreddy stated mills will distribute sugar to solely prepared cane farmers and it will be topic to sale quota allotted for the month to the mill involved by the Government of India. “The cane farmers will have to lift sugar from sugar mill’s godown by their own means and no transport subsidy will be given for it. By doing so, the farmers can save around Rs 1,300 to Rs 1,400 per quintal as the price at the mill godown would be around Rs 31.50/kg, while if they buy in the open market, sugar price would be around Rs 42 per kg. So, in three months it would amount to more than Rs 4,000 for three quintals,” he stated.

“There are almost 50 lakh farmers who supply cane in UP. If all agree to lift the sugar for three months, this will take care of 1.5 crore quintals of sugar stock. Mills would be happy as it would save them the holding and storage cost of this much sugar,” he stated.

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