Union government announces sugarcane subsidy, farmers remain unimpressed

While some farmers responded positively to the news, farmers committed to the national struggle insist the central government is trying to distract them

sugarcane subsidy

The Cabinet Committee on Economic Affairs (CCEA) approved Rs. 3,500 crore as subsidy for sugarcane farmers, said Union Minister of Heavy Industries and Public Enterprises Prakash Javadekar on December 16, 2020.

During a press conference, Javadekar said five crore farmers will benefit from this decision under which farmers will get subsidy directly in their account. He said the subsidy will be given on 60 lakh tonnes of sugar exports at the rate of Rs. 6,000 per tonne.

A CCEA press release acknowledged that sugarcane farmers are not getting their dues from sugar mill owners as they have surplus sugar stock. To address this concern, the central government is facilitating the evacuation of surplus sugar stock, it said.

The subsidy covers marketing costs such as handling, upgrading and other processing costs and costs of international and internal transport and freight charges on export of up to 60 LMT of sugar limited to Maximum Admissible Export Quota (MAEQ) allocated to sugar mills for sugar season 2020-21.

The full details regarding the government decision are as follow:

The Union government announced the subsidy on social media using the hashtag ‘Government With Ganna Kisan.’ The news was well received by the Shetkari Sangathan in Maharashtra.



However, farmers who reached Chilla border from Uttar Pradesh to join the national peasants’ struggle called a scheme “another lollipop” to distract farmers from larger issues such as Minimum Support Prices (MSPs.) While talking to NDTV, farmers claimed that the scheme would benefit mills more than farmers.

Farmer leaders in Delhi have appealed to farmers repeatedly not to give in to the central government’s divide-and-rule policy. Members of the Sanyukta Kisan Morcha asserted that not a single farmers’ organisation affiliated with the movement has backed out of the struggle so far.

Regarding the recent subsidy, they said the government is welcome to introduce new policies however farmers will not relent on the withdrawal of three farm Acts – the Farmers (Empowerment and Protection) Agreement on Price Assurance & Farm Services Act, the Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Act and the Essential Commodities (Amendment) Act – and the Electricity Bill 2020.


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