New Delhi : The Union Cabinet today cleared a package for sugar industry to ensure cash-starved mills clear dues to sugarcane farmers. This was confirmed by highly placed sources after the Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi. The Food Ministry had sent a proposal of eight thousand crore rupees package to the Cabinet.

Last month, the government had announced over 1,500 crore rupees production-linked subsidy for sugarcane farmers to help millers pay cane payments.

Sugar mills are unable to make payments to cane growers as their financial health has worsened due to a sharp fall in sugar prices after a record production of 31.6 million tonne so far in the 2017-18 season.