Cabinet may discuss incentivising cane farmers to help mills clear dues

Sugar mills on their part would then have to pay the remaining state-mandated price to farmers, lowering their financial burden and improving liquidity, according to a senior official

As sugarcane dues mounting to almost Rs 200 billion in Uttar Pradesh, the Cabinet Committee on Economic Affairs (CCEA) might discus at its meeting scheduled for today a proposal to provide an incentive of Rs 5.5 per quintal to farmers through sugar mills. 
 

As decided by the ministers, incentive amount could be higher which would be transferred into an escrow account maintained by the sugar mills, the collections of which is used only for making payments to farmers.

To lower financial burden and improve liquidity, the sugar mills would then have to pay the remaining state-mandated price to the farmers.