Govt plans incentives for sugar mills to pay cane growers: sources

The government is likely to give incentives to sugar mills to pay cane growers, government and trade sources said on Tuesday, as part of efforts to help sugar companies saddled with large stocks and lower prices.

"We are working out some sort of subsidy for mills so that farmers can be paid on time," a government source said.

Sugar mills owe Rs 12,000 crore ($1.82 billion) to cane growers, as sugar prices have fallen more than 20% while cane prices have gone up by more than 50% since the 2009-10 season.

India's sugar marketing year runs from October to September.

($1 = 65.9700 rupees)