India to pay 45 rupees/T incentive to cane growers -govt sources

Bannari Amman Sugars

18/11/2015 07:49

NEW DELHI, Nov 18 (Reuters) - India will, for the first 
time, pay sugarcane farmers in part for produce that they sell 
to money-losing mills, government sources said on Tuesday after 
a cabinet meeting chaired by Prime Minister Narendra Modi. 
    Modi's government would directly pay farmers 45 Indian 
rupees  ($0.68) for every tonne of cane produced, leaving mills 
to bear the rest of nearly 98 percent of the cost, one of the 
sources said, aimed at wooing politically influential growers 
and helping sugar companies recovering from a global glut. 
    The sources did not wish to be identified as the government 
is soon expected to announce the cabinet decision. 
    Shares of Indian sugar companies have been rising on hopes 
of government help  and stocks of Shree Renuka Sugars  SRES.NS , 
Simbhaoli Sugars  SIMB.NS  and Bannari Amman Sugars  BANN.NS  
shot up further on Wednesday. 
    Last month Reuters reported that India, the world's biggest 
consumer and the No. 2 producer after Brazil, was considering 
directly paying millions of cane farmers.  urn:newsml:reuters.com:*:nL3N12K4AY 
    ($1 = 66.1900 Indian rupees) 
 
 (Reporting by Mayank Bhardwaj and Nigam Prusty; Editing by 
Malini Menon) 
 ((mayank.bhardwaj@thomsonreuters.com; +91-11-4178 1019; Reuters 
Messaging: mayank.bhardwaj.thomsonreuters.com@reuters.net)) 
 
Keywords: INDIA SUGAR/