New Delhi: Three days before Karnataka votes, the Centre on Wednesday issued orders to pay financial assistance to cane farmers at the rate of Rs 55 per tonne of sugar cane crushed during the 2017-18 sugar season.
Last week the Cabinet Committee on Economic Affairs had approved the proposal to provide production subsidy to farmers to help sugar mills clear the arrears which have crossed Rs 20,000 crore.
According to government officials, sugar mills in Karnataka owe more than Rs 2,420 crore to cane growers. “Central Government issued orders on Wednesday for extending assistance to clear the dues of sugarcane farmers,” a government official said.
“The said assistance shall be paid directly to the farmers on behalf of the mills and be adjusted against the cane price payable due to the farmers against Fair and Remunerative Price (FRP) including arrears relating to previous years,” a detailed official statement said.