Production Subsidy of 4.50/quintal to Sugarcane farmers are approves by CCEA [ Current Affairs ]

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To pay Production - linked subsidy of Rs. 4.50 per quintal directly to sugarcane farmers has decided by The Cabinet Committee on Economic Affairs (CCEA) in the current crushing season. Prime Minister Narendra Modi has taken this decision at CCEA meeting in New Delhi.

Key facts

  • The main aim behind this decision is to help cash strapped sugar mills clear arrears and would cost public fund about 1, 147 crore rupees.
  • The production subsidy aim is to balance the cost of sugarcane and f the timely payment facility of cane prices to farmers.
  • In present situation sugar mills across the country are facing a liquidity crunch due to low prices of the sweetener in retail markets and they incur about 6, 500 crore rupees to cane farmers.
  • Union Government had given sugar export subsidy to millers in order to help them clear cane dues to farmers In the last two crushing seasons. But it was canceled in this season by cause of World Trade Organization (WTO) objections.

Development of Boundary of Credit to African and other developing countries

  • The CCEA also gave its approval to develop Boundaries of credit to African and other developing countries for another five years from 2015 - 16.
  • Indian Development and Economic Assistance (IDEA) Scheme has provided the boundary of credit under them which has been in operation since 2005 - 06
  • For the development of countries IDEA scheme attempts to promote India’s strategic political and economic interest abroad by positioning it as came with economic power and partner.
  • The budgetary provision would make by Union Government around 3, 772 crore rupees for this scheme.
  • Important components of India’s diplomatic strategy are the Boundary of Credit.
  • It would be very useful mechanisms in generating goodwill and building long term partnerships with different countries.

- Published on: November 23, 2015