August 14, 2014 2:05 PM

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Cane farmers must get FRP as production has risen: Food Min

Food Minister Ram Vilas Paswan today discussed the issue of sugarcane arrears with representatives of state governments, sugarcane farmers and sugar mills.The Minister expressed concern over the fact that many sugar mills are not giving Fair and Remunerative Price-FRP to sugarcane farmers. He said that farmers should get the FRP as sugarcane and sugar production in the country has increased. The Minister was briefed about the problems being faced by the stakeholders. Mr Paswan said, prices of sugar will not increase as there is sufficient stock of sugar in the country.Our Correspondent reports, that to improve cash flow of sugar mills, the government had last year approved a 6,600 crore rupee interest-free loans to the sugar industry exclusively for clearing sugarcane arrears. It had also decided to give loans through banks, equivalent to the excise duty paid by the mills in the past three years.The sugar industry has been facing a cash crunch due to higher cost of production and lower selling prices in the wake of surplus output over the past few years. Sugarcane farmers in Uttar Pradesh are protesting over non-payment of their dues.

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