After Kairana Loss, Govt Plans Rs 8,000 Crore Relief For Sugarcane Farmers

| June 5 , 2018 , 09:04 IST

BJP losing the Kairana bypoll in Uttar Pradesh was partially blamed on the ruling BJP's lack of relief for the sugar cane farmers, and accordingly, the government is said to be considering a bailout package of over Rs 8,000 crore for the cane farmers, media reported on Tuesday.

The total relief amount will include setting up a buffer stock of 30 LMT (lakh metric tonne), for which money would be directly transferred to the bank accounts of the farmers. The minimum sale price for sugar would also be fixed around Rs 20 per kg. The package would also include a scheme worth Rs 4,400 crore to increase the capacity for production of ethanol, which is one of the by-products of sugarcane.

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Prime Minister Narendra Modi on May 27, during the inauguration of the Eastern Peripheral Expressway in UP's Baghpat before the bypolls in neighbouring Kairana had assured the sugarcane farmers of the government's commitment to their welfare.

"Sugarcane farmers will get benefit of Rs. 5.50 on per quintal of sugarcane... Farmers' money will never get stuck with mill owners. I assure sugarcane farmers, the government is committed to their welfare," PM Modi said, adding that 5 crore sugarcane farmers have benefitted from the government's initiatives.

Last month, the Centre had announced a production-linked subsidy worth Rs 1,500-crore for sugarcane farmers to help millers pay cane payment.

Despite the attempts of the BJP at wooing the sugarcane farmers in the largest cane producing state in the country, namely Uttar Pradesh, the Kairana bypoll was won by RLD candidate Tabassum Hasan, who had the backing of the Congress, Samajwadi Party and Mayawati's BSP.