The Central government is going to announce Rs 7,000 crore package which includes the creation of a buffer stock, fixing a minimum sale price for sugar and to ensure cash-starved mills clear dues to farmers at the earliest, sources said.&nbsp;

A decision in this regard is expected to be taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) scheduled tomorrow, the sources added.

Last month, the government had announced a Rs 1,500 crore production-linked subsidy for sugarcane farmers to help millers pay cane payments.

Sugar mills are unable to make payments to cane growers as their financial health has worsened due to a sharp fall in sugar prices after a record production of 31.6 million tonne (MT) so far in the 2017-18 season (October-September).

Maximum cane dues of more than Rs 12,000 crore are in Uttar Pradesh alone, the country's biggest sugarcane producing state.

According to sources, the government has worked out a slew of measures to ensure farmers' dues are cleared by mills.

India’s domestic sugar production at over 31.5 million tonnes in 2017-18 is the highest ever, and the resultant crash in wholesale prices meant mills were unable to pay farmers on time.&nbsp;

India, the second largest producer of sugar after Brazil is home to nearly 50 million cane farmers, mostly in UP, Maharashtra and Karnataka. Further, about 500,000 workers are directly employed by sugar mills.

Maximum cane dues of more than Rs 12,000 crore are in Uttar Pradesh alone, the country's biggest sugarcane producing state.

The Central government is going to announce Rs 7,000 crore package which includes the creation of a buffer stock, fixing a minimum sale price for sugar and to ensure cash-starved mills clear dues to farmers at the earliest, sources said. A decision in this regard is expected to be taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) scheduled tomorrow, the sources added. Last month, the government had announced a Rs 1,500 crore production-linked subsidy for sugarcane farmers to help millers pay cane payments. Sugar mills are unable to make payments to cane growers as their financial health has worsened due to a sharp fall in sugar prices after a record production of 31.6 million tonne (MT) so far in the 2017-18 season (October-September). Maximum cane dues of more than Rs 12,000 crore are in Uttar Pradesh alone, the country's biggest sugarcane producing state. According to sources, the government has worked out a slew of measures to ensure farmers' dues are cleared by mills. India’s domestic sugar production at over 31.5 million tonnes in 2017-18 is the highest ever, and the resultant crash in wholesale prices meant mills were unable to pay farmers on time. India, the second largest producer of sugar after Brazil is home to nearly 50 million cane farmers, mostly in UP, Maharashtra and Karnataka. Further, about 500,000 workers are directly employed by sugar mills.

Centre likely to announce bailout package of Rs 7,000 crore for sugarcane farmers

The all-powerful GST Council today deferred a decision on levying a cess on sugar and referred the issue of incentivising digital payments to a group of state finance ministers.

The panel, the highest decision making body of the Goods and Services Tax (GST) regime, in its 27th meeting agreed to a proposal to convert the GST Network -- the company that provides IT backbone to the new indirect tax regime -- into a government-owned entity.

Announcing the decisions taken today, Finance Minister Arun Jaitely, who chaired the meeting conducted through a video conferencing, said a road map for introduction of simplified return filing has been decided.

A single monthly return filing system would come into force in six months, Finance Secretary Hasmukh Adhia said.

Jaitley said while most states were in favour of giving a 2 per cent incentive if all payments are paid digitally or through cheques, some wanted a small negative list and so the issue will be referred to a five-member group of state finance ministers.

Another group of ministers (GoM) would look at the issue of levy of cess on sugar beyond the GST tax rates.

West Bengal Finance Minister Amit Mitra said some states were not in favour of such a levy.&nbsp;

Jaitley said the GST Network or GSTN currently is 24.5 per cent owned by the central government and a similar percentage is held by state governments collectively. The remaining 51 per cent is with five private financial insitutitions -- HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd.

The council agreed to a proposal of buying out the stake of private entities to make GSTN a government-owned entity, he said adding the central government will own 50 per cent and the remaining would be collectively held by state governments.&nbsp;

A single monthly return filing system would come into force in six months, Finance Secretary Hasmukh Adhia said.

The all-powerful GST Council today deferred a decision on levying a cess on sugar and referred the issue of incentivising digital payments to a group of state finance ministers. The panel, the highest decision making body of the Goods and Services Tax (GST) regime, in its 27th meeting agreed to a proposal to convert the GST Network -- the company that provides IT backbone to the new indirect tax regime -- into a government-owned entity. Announcing the decisions taken today, Finance Minister Arun Jaitely, who chaired the meeting conducted through a video conferencing, said a road map for introduction of simplified return filing has been decided. A single monthly return filing system would come into force in six months, Finance Secretary Hasmukh Adhia said. Jaitley said while most states were in favour of giving a 2 per cent incentive if all payments are paid digitally or through cheques, some wanted a small negative list and so the issue will be referred to a five-member group of state finance ministers. Another group of ministers (GoM) would look at the issue of levy of cess on sugar beyond the GST tax rates. West Bengal Finance Minister Amit Mitra said some states were not in favour of such a levy. Jaitley said the GST Network or GSTN currently is 24.5 per cent owned by the central government and a similar percentage is held by state governments collectively. The remaining 51 per cent is with five private financial insitutitions -- HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd. The council agreed to a proposal of buying out the stake of private entities to make GSTN a government-owned entity, he said adding the central government will own 50 per cent and the remaining would be collectively held by state governments.

GST Council defers decision on sugar cess, refers digital payments incentive issue to GoM

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