Why the Rs 70 bn sugar sector bailout won't resolve farmers' grievances

Sugar industry, sugarcane farmers are likely to be in a similar crisis next year too as domestic production is likely to be in excess of domestic consumption

On June 6, the Union cabinet announced a Rs 70 billion bailout package to ‘deal with the current crisis in the sugar sector’. The government’s use of the word ‘current’ is curious as it is unlikely to provide any substantial and immediate relief to sugarcane farmers or the sugar industry.

Of the Rs 70 billion package, only Rs 11.75 billion (17% of the total) has been allocated to pay the pending dues of sugarcane farmers. The rest, worth Rs 57.32 billion, is aimed towards providing financial assistance to sugar mills in order to augment capacity by investing in infrastructure.

According