The move assumes significance as Maharashtra, the second largest producer of sugarcane and sugar in the country, as well as Haryana go to the Assembly polls later this year.The Union Cabinet on Wednesday announced its decision to create a buffer stock of 40 lakh metric tonnes (LMT) for sugar in the country with an aim to help stabilise sugar prices and assist sugar mill owners in clearing dues of cane farmers.
The buffer stock of 40 LMT sugar for one year will cost the exchequer Rs 1,674 crore, according to the government.
The move assumes significance as Maharashtra, the second largest producer of sugarcane and sugar in the country, as well as Haryana go to the Assembly polls later this year.
Outstanding dues of cane farmers from sugar mills is Rs 17,518 crore nationally. In Maharashtra, the dues are to the tune of Rs 1,061 crore, of which Rs 826 crore are for 2018- 2019 sugar season, Consumer Affairs, Food and Public Distribution Minister Ramvilas Paswan had told the Lok Sabha on Tuesday.
According to the government, in order to ensure that sugarcane farmers are not affected by a glut under the buffer scheme, reimbursement on behalf of mills will take place quarterly and the money will be credited to farmers’ accounts for their crop dues. The balance will be given to the sugar mills, it was announced.
The government said this move will help improve liquidity of sugar mills, reduce sugar inventories in the country and stabilise price and help clear the arrears.
Last year, the government had created a 30 LMT buffer stock of sugar for a one-year period from July 1, 2018.
There has not been any increase in the Fair and Remunerative Price for sugarcane compared to last year, with the price kept at Rs 275 per quintal, the government announced.
Changes to Aadhaar Bill cleared
The Cabinet on Wednesday also approved amendments to Aadhaar and Other Laws (Amendment) Bill, 2019, which has a clause to enable states to use Aadhaar of beneficiaries for subsidies.
After the Supreme Court’s September 2018 ruling, Aadhaar could only be used for central welfare schemes where subsidies were paid from the Consolidated Fund of India. Now the approved amendment will allow subsidies paid by the Consolidated Fund of State as well. Parliament had recently cleared amendments to the Aadhaar Act to allow it to be used as a KYC document for telecom companies and banks.
Announcing the Cabinet’s decision, Information and Broadcasting Minister Prakash Javadekar said the move will allow states to use Aadhaar for their welfare schemes. This, he said, will bring transparency, check “fraud” and ensure that the subsidy reaches the intended beneficiaries. He said many states had demanded that use of Aadhaar be allowed and the amendment will enable them to do that.
* The Cabinet also approved sale of 481.79 acres of land held by the Fertilisers and Chemicals Travancore Limited to the Kerala government and use the sale proceeds for the company’s growth.
* The merger of National Institute of Miners’ Health, under the Union Ministry of Mines, with ICMR-National Institute of Occupational Health, under the Union Ministry of Health and Family Welfare, also got the Cabinet’s nod. This, Javadekar said, is a step towards “good governance” and “maximum governance, minimum government”.
