CCEA approves creation of sugar buffer stock to incur expenditure of Rs.1674 cr

The reimbursement under the scheme would be met on a quarterly basis to sugar mills which would be directly credited into farmers’ account on behalf of mills against cane price dues and subsequent balance, if any, would be credited to the mill’s account.

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the following proposals:

Creation of buffer stock of 40 lakh metric tonnes (LMT) of sugar for one year and to incur an estimated maximum expenditure of Rs.1674 crores for this purpose. However, based on the market price and availability of sugar, this may be reviewed by the Deptt. of Food and Public Distribution at any time for withdrawal/modification.

The reimbursement under the scheme would be met on a quarterly basis to sugar mills which would be directly credited into farmers' account on behalf of mills against cane price dues and subsequent balance, if any, would be credited to the mill's account.

Benefits:

The decisions will lead to:

improvement in the liquidity of sugar mills;

reduction in sugar inventories;

stabilization in sugar prices by alleviating of price sentiments in the domestic sugar market and thereby facilitate the timely clearance of cane price dues of farmers; and

benefits for sugar mills in all sugarcane producing States, by way of clearing sugarcane price arrears of sugar mills

(With Inputs from PIB)