Sugarcane farmers might get a direct subsidy of Rs 4.5 for each crushed quintal in the 2015-16 crop season, if the Cabinet decides so on Wednesday.

The proposal, likely to be discussed at the Cabinet meeting, is aimed at lowering the financial loss of the growers.

Officials said if the proposal was approved, it would perhaps be one of first big attempts by the Centre to directly help farmers.

It would also transfer the subsidy or incentive directly into the bank accounts of the growers.

The total subsidy outgo for the government in 2015-16 crop season could be Rs 1,100 crore.

If the decision goes through, sugar millers would pay Rs 4.50 a quintal less than the fair and remunerative price(FRP) of Rs 230 a quintal to the farmers. This would ease their financial burden to some extent.

Officials said the proposal would also enable sugar mills to export around 3 million tonnes in the 2015-16 season. This quantity was allocated to them as part of the minimum indicative export quota for the season.

The production incentive will be available to farmers attached to only those sugar mills that fulfill much of its export obligation, and have co-generation, ethanol and other facilities.

However, these conditions are not stringent.

Sugar export subsidy was given to millers in the previous two seasons to help them clear cane dues to farmers.

But this was discontinued due to objections of the World Trade Organization.

Sugar millers are facing liquidity crisis due to a fall in sugar prices, in the wake of a glut in the domestic and global markets.

The country is estimated to produce surplus sugar for a sixth year, at 26 million tonnes.