Govt may announce a package of almost Rs 80 bn to bail out sugar sector

Days after the ruling BJP suffered an electoral setback, primarily in the sugarcane-growing belt of western Uttar Pradesh, and with farmers in parts of the country stopping supplies of essential commodities to protect price fall, the Centre is expected to announce a fresh package of almost Rs 80 billion to bail out the sugar sector.

This will be in addition to the financial assistance of Rs 5.50 per quintal of sugarcane announced a few weeks ago, costing over Rs 15 billion.

Officials said the government is likely to take a formal decision on the sugar package at a Cabinet meeting