Amid farm stir, Centre approves Rs 3,500-crore sugar export subsidy

Sugarcane farmers to get the amount directly into their bank accounts

The central government on Wednesday approved a subsidy of Rs 3,500 crore to sugar mills for the export of around six million tonnes (MT) in the ongoing 2020-21 marketing season that started in October.

It also cleared pending export subsidy of around Rs 5,360 crore, which will be passed on directly into the bank accounts of farmers through an escrow account in a week’s time.

Both the decisions are meant to enable mills to make timely payment to sugarcane farmers in the current year and clear their arrears, which according to government sources is estimated to be around Rs 3,574 crore as