LUDHIANA: With a view to promote sugarcane farming, the Punjab government has decided to modernize all sugar mills in the state. The state government will also be clearing outstanding dues of Rs 200 crore. This was informed by S K Sandhu, financial commissioner (cooperation) and principal secretary, while interacting with farmers after participating in a seminar at Neelon Bridge on Monday.

Sandhu informed that the Punjab government has decided to make sugarcane as main crop for crop diversification in the state under which all sugar mills of the state are modernized.

He said that first and foremost, the capacity of sugar mills will be increased. The capacity of Bhogpur Sugar Mill has increased from 1,600 metric tonne to 3,000 metric tonne. The capacity of remaining sugar mills is also to be increased.

All sugar mills have been directed to distribute sugarcane seed to the farmers and they will start getting the seed from next two years. He said that for clearing outstanding payments, the Punjab government has kept a budget of Rs 300 crore, out of which Rs 100 crore has already been issued while the remaining Rs 200 crore would be issued soon.

Sandhu urged the farmers to adopt drip irrigation for sugarcane farming and that the state government is giving a subsidy of 80-90%. "For the remaining 20% balance, the farmer can get easy loan from cooperative banks. For installing drip irrigation in one acre of land, an amount of Rs 60,000 is required," he said.