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Threefold solution for sugar payments crisis
Context:
A Group of Ministers has suggested a three-fold solution to the sugar payment crisis
Background of the Crisis:
- Following higher sugarcane production and crash in prices dues to sugarcane farmers from mills have piled up
- Payment to sugarcane farmers is considered ‘due’ when it is delayed by more than 14 days after supplying raw cane to a mill
- As of March 2018, sugar mills had pending dues worth Rs.13, 899 crore
- According to Indian Sugar Mills Association, the due has presently crossed Rs. 20,000 crore
What suggestions have been put forward?
- Sugar cess
- Production subsidy for cane farmers
- Reduction of the Goods and Services Tax on ethanol from 18% to 5%
