In addition to the already announced Rs 609 crore (Rs 6.09 billion) assistance to the sugarcane sector, the government said on Monday that it is planning a second package.
"To ensure that the farmers of the entire country benefit from the central assistance, another package is being worked out for the non-SAP (State Advisory Price) states," Agriculture Minister Rajnath Singh told PTI.
Without divulging the details of the package, he said it will be announced shortly in Parliament.
He said the assistance has nothing to do with the Sugar Development Fund and source and mode of disbursal would be finalised in consultation with the finance ministry.
Most of the states in north India fix their own SAP at which mills purchase cane from the farmers. However in 2002-03 the mills failed to pay the fixed SAP to the farmers on the plea that sugar prices have fallen drastically.
They instead paid a cane price based on the Statutory Minimum Price of Rs 69.50 per quintal (fixed by the Centre) at a basic recovery of 8.5 per cent.
The Centre's "one-time package" of Rs 609 crore seeks to bridge the difference between the SMP based price and the SAPs of individual states, which in the case of Uttar Pradesh are on an average Rs 82 per quintal and Rs 95 per quintal respectively.
Singh said in many states there is no SAP but farmers in these states too have borne the brunt of lower prices and therefore they too will be provided assistance by the Centre.
The first cane package announced earlier this month was criticised as being restricted to a handful of states and its source of funding was questioned.