Patna, (Bihar Times): The Bihar government has announced a subsidy of Rs 47 crore to help sugar mills clear their sugarcane arrears. The decision was taken by the state cabinet in a meeting held on Friday.

According to Cane Development Minister Nitish Mishra each of the nine sugar mills will get a cash subsidy of Rs seven a quintal for the total sugarcane crushed in the last season. The money will be disbursed to the District Magistrates of the district where these mills are located.

Sugar mills of Bihar owe Rs 90 crore to farmers for the sugarcane they purchased in the state from last season. After this help from the state, mills will still owe about Rs 47 crore to farmers, which will be cleared once they receive the central government announced interest-free loans against excise payments.

It needs to be mentioned that for the current sugar season the state has reduced the per quintal sugarcane price from Rs 120 to Rs 98, from Rs 115 to Rs 93 and from Rs 111 to Rs 86 for the three sugarcane varieties purchased by mills.