ForumIAS LATEST
- 5 August | Toppers Wrote 1000 Answers Between Prelims & Mains! | Click Here to Watch →
- 5 August | Are you the Average of the 5 People Around You by Mr. Ayush Sinha | Click Here to Watch →
- 5 August | First UPSC Mains Don't Chase AIR 1 by Mr Ayush Sinha | Click Here to Watch →
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%
