The Cabinet Committee on Economic Affairs has approved the assistance of about Rupees 3,500 crore for the sugarcane farmers (Ganna Kisan).

The Cabinet chaired by Prime Minister Narendra Modi and Prime Minister of India is the ex-officio chairman of the union cabinet.

Points To Note

  • Currently, there are around 5 crore (50 Million) sugarcane farmers and their dependents in India.
  • Apart from that, there are around 5 lakh workers who are employed in the sugar mills and ancillary activities. Their livelihood depends on the sugar industry.
  • The subsidy will benefit the 50 Million sugarcane farmers and their dependents in India.

utilisation of funds

Presently, Farmers sell their sugarcane to the sugar mills in the country. But they do not get their dues from the sugar mill owners because they have surplus sugar stock. Thus, to address this issue, the Central Government is facilitating the evacuation of surplus sugar stock. By doing do, the sugarcane farmers would be provided with their dues. For this purpose, the Government will incur about Rupees 3500 crore. The compensation would be directly credited into farmers’ accounts. It will be credited on behalf of the sugar mills against the cane price dues and subsequent balance.


The sugarcane subsidy is being provided with the aim to cover the expenses on marketing costs. It also includes the handling, upgrading and other processing costs. Costs of international transport, internal transport and freight charges on export of up to 60 lakh metric tonnes of sugar has also been included. These charges are limited to the MAEQ which has been allocated to the sugar mills for 2020-21 sugar session. MAEQ is Maximum Admissible Export Quota. Union Cabinet approves Assistance for Sugarcane Farmers Union Cabinet approves Assistance for Sugarcane Farmers