No more State aid, sugarcane farmers to get Central rate

THE GOAN NETWORK | MAY 16, 2025, 12:13 AM IST

PANAJI

The State government has announced discontinuation of the ‘Special Assistance cum Compensation scheme’ offered to sugarcane farmers since June 2021. The government has now notified to procure the sugarcane produced by the farmers at the Central government notified Fair and Remunerative Price (FRP).

In a notification issued, Director Agriculture Sandeep Fol Dessai said the scheme ‘Special Assistance for Sugarcane Grower’ introduced to the farmers from June 17, 2021 is withdrawn’. The decision is with the government's approval.

Under the five-year scheme, the government has so far paid Rs 40 crore to around 700-odd farmers. The Goan in its February 12 edition informed about the government plans to discontinue the scheme and bring in a new scheme based on FRP.

Fol Dessai, however said that in order to assist the sugarcane growers to take up sugarcane cultivation in the State, the government has introduced a new scheme ‘Assistance towards Sugarcane supplied by the sugarcane growers’. The Scheme will be in force for a period of two years -- 2026-27.

Under the scheme, sugarcane cultivated by farmers/cultivators will be supplied at Sanjivani Sugar Factory, and will be weighed there and provided/paid financial assistance as per FRP fixed by the National Federation of Co-operative Sugar Factories Ltd., New Delhi, from time to time.

While the farmers will have to register with the sugar factory, they will be paid based on actual tonnage of canes weighed at the factory weighbridge. The government has said that it will not be responsible for harvest or supply of transportation of the sugarcane and that the farmers will have to do it at their own cost.

The sugarcane will be procured by the government appointed agency.

“Grievances if any, arising out of the implementation of the scheme, shall be heard and decided by the Minister for Agriculture and the decision of the Minister of Agriculture in this regard shall be final and binding on all concerned,” the notification stated.

In lieu of the Dharbandora-based Sanjivani Sugar Factory’s closure in 2019, the government in 2021 notified a scheme “Special Assistance for Sugarcane Growers” in the State, for a period of five years.

As per data, from 2020-21 till 2023-24, the government has paid around 40 crore to close to 700 farmers, while this year's compensation is under consideration.

According to the information provided by the Administrator, in the first year- 2020-21, total 731 farmers were paid compensation of Rs 11.83 crore, at a rate of Rs 3,000 per metric tonnes. For the year 2021-22, the rate was revised to Rs 2,800 per metric tonnes, as per which Rs 10.28 crore was paid to 690 farmers.

In 2022-23, total 665 farmers were paid compensation of Rs 8.86 crore at a rate of Rs 2,600 per metric tonnes, while last year, the government shelled out Rs 8.32 crore to 682 farmers. The rate fixed by the government was Rs 2,400 per metric tonnes.  




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