In order to help sugar mills to clear cane dues of farmers, the Government on 5.10.2018 has notified a scheme to provide financial assistance @ of Rs. 13.88 per quintal of cane crushed in sugar season 2018-19 to sugar mills to offset the cost of cane. The total expenditure on this account would be about Rs.4163 cr. which will be borne by Government. To ensure payment of sugarcane dues of farmers, the assistance would be credited directly into the accounts of farmers on behalf of sugar mills against cane price dues payable to farmers against FRP including arrears relating to previous years and subsequent balance, if any, would be credited to mill’s account.
Government has notified a scheme "Assistance to sugar mills” under which financial assistance @Rs.5.50/quintal of cane crushed will be provided to sugar mills to offset the cost of cane amounting to about Rs.1540 crore. The assistance is to be used for payment of cane price dues of the current sugar season 2017-18 and arrears of previous sugar seasons. The assistance shall be paid directly to the farmers on behalf of the mills and be adjusted against the cane price dues payable to the farmers including arrears. Subsequent balance if any, shall be credited into mill's account.