Several initiatives, including a biomass framework, were announced in the past budget to help sugarcane growers.
To help small sugarcane growers and ensure a fair and equitable division of the crop’s profits, the government will:
- Maintain a minimum guaranteed price of Rs 25,000 per ton for sugar plantations producing up to 60 tons.
- Continue to pay the premium to the Sugar Insurance Fund Board for those who produce less than 60 tons of sugar.
- Waive CESS in respect of crop 2022.
To encourage sugarcane planters to renew some 10,000 hectares of crops: –
- The grant under the Cane Replantation Scheme will be increased by 43 percent from Rs 35,000 to Rs 50,000 per arpent.
- A “Cane Replantation Revolving Fund” will be introduced by the DBM to provide loans at an annual preferential rate of 2.5 percent.
Those who want to bring back abandoned land into cultivation will also be eligible under this Scheme.