The Cabinet Committee on Economic Affairs (CCEA) has approved a comprehensive policy package of Rs 5,500 crore on 26^th September, 2018, to improve liquidity of sugar mills and provide assistance for clearing cane arrears, which stand at Rs 13,000 crore for sugar season (SS) 2017-18.

The package includes:

• Rs 1,375 crore towards internal transport, freight, handling and other charges to facilitate export for SS 2018-19. The subsidy for mills across India would be as follows:
  
  • Rs 1,000/ tonne of sugar for mills located within 100 km of ports
  • Rs 2,500/tonne of sugar for mills located beyond 100 km from the ports and in coastal states
  • Rs 3,000/tonne of sugar for mills located in non-coastal states or actual expenditure, whichever is lower
• Raw material subsidy of Rs 13.88 per quintal of cane crushed during SS 2018-19 to be provided to mills which fulfil the conditions stipulated by the Department of Food and Public Distribution. A total expenditure of Rs 4,163 crore has been approved for this purpose
  
• To ensure payment of cane dues to farmers, both these subsidies would be credited directly to accounts of farmers on behalf of sugar mills