Government's re-introduced subsidy for sugarcane farmers, seems a positive move

Abinash Verma, Director General, Indian Sugar mill Association (ISMA),  welcomes the decision of the government to re-introduce the subsidy for sugarcane farmers as part of the Fair and Remunerative Price (FRP), fixed by the Government as payable by the sugar industry to the farmers. 

The quantum of Rs. 55 per ton of sugarcane would work out to around Rs. 1550-1600 crore for the current season.  Though the losses of sugar companies are much higher and this subsidy will reduce a small part of the losses that the sugar mills are incurring due to a massive fall in the ex-mill sugar price even when the FRP has been increased by 11% in the current season, this decision to bear a part of the FRP by the government is seen as a positive move. 

It is important to note that the government has not only accepted the fact that the sugar industry and the farmers are in a trouble, but this can be taken as the first step towards various other initiatives and financial assistance that the government has to take very soon to further help the industry and the sugarcane farmers come out of the current crisis.

the movement will soon help to improve the current situation of sugarcane farmers and the sugar mills, facing the crisis in the industry and will help to regulate the arrears to be given to the farmers by the sugar mills.