Sugar sops and the politics behind it: How much can the government offer?

In 2017-18 crop year, till mid-May, sugarcane arrears amounting to almost Rs 8 billion hadn't been paid to the farmers by the six mills located within the constituency

Between May and September 2018, the Union Cabinet Committee on Economic Affairs (CCEA) met approximately 16 times and in six of them (around 38%), a decision related to the crisis engulfing the country’s sugar sector was taken.

From hiking the Fair and Remunerative Price (FRP) of sugarcane with a new recovery-based formula to raising the price at which Oil Marketing Companies (OMCs) will buy ethanol, the Central government seems to be trying everything under the sun to ensure quicker payment of mounting sugarcane dues to farmers. The latest estimate of the total dues is close to Rs 130 billion.

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