Yogi Adityanath pilots experiment; offers sugar in lieu of cash to sugarcane farmers

The Yogi Adityanath government in Uttar Pradesh has decided to give sugar to 'willing cane farmers' in lieu of their balance cane price of season 2019-20. According to an official release by the UP Sugar and Cane Commissioner, Sanjay R. Bhoosreddy, the sugarcane farmers who supply sugarcane to sugar mills during the year 2019-20 can take sugar in return for their outstanding cane price. 

He said that the government has taken this decision after considering the demand of sugarcane farmers. According to this decision, the sugar provided by the sugar mills to the sugarcane farmers against their outstanding cane price will be adjusted against the sugarcane price.

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One quintal to each farmer

Each farmer can take one quintal (2 bags of 50 kg each) sugar from sugar mill, after dropping his/her sugarcane while going back home following social distance norms, in lieu of their balance cane dues payment of the 2019-20 season. The value of the sugar made available by sugar mills to willing cane farmers will be adjusted from their balance cane dues of 2019-20.

One quintal of sugar every month, on the minimum sale price of that day or minimum sale price of the previous day along with the GST, will be made available to sugarcane farmers and this facility would be available till the month of June 2020. The release further said that the cane farmers will have to lift sugar from sugar mill godown by their own means and no transport subsidy will be given for the same.

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The distribution of sugar will be done only under the monthly quota of the mill concerned by the central government and the responsibility of depositing GST in the treasury as per rules will be the responsibility of the sugar mill concerned. If the matter of depositing GST or giving sugar to farmers at a price higher than the minimum price will come to the notice then the concerned mill will be responsible for it, the release further mentioned.

According to reports, the farmer would get an additional benefit between ₹1,300 to ₹1,400 per quintal and in 3 months it would amount to more than ₹4,000 for 3 quintals. Official sources said that the total number of farmers that would be benefited is around 50 lakh and the total quantity of sugar the farmers would get would be 50 crore quintals in three months, which would be three crore bags of 50 kg each.

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(with agencies input)