In a major relief to sugarcane farmers, the Centre on Thursday announced a one-time financial package of Rs 600 crore (Rs 6 billion) to be distributed through the Sugarcane Development Fund.

This was announced by Union Agriculture Minister Rajnath Singh after a meeting with Prime Minister Atal Bihari Vajpayee and Finance Minister Jaswant Singh, in New Delhi.

This financial assistance would be used for the payment of arrears to farmers arising out of the differences between state administrative price and statutory minimum price, Singh said, adding farmers of three states - Uttar Pradesh, Uttaranchal and Haryana - would be the major beneficiaries of this package.

Singh said details of the package would be worked out with the respective states. The package would also be applicable for states which announce their own state administrative price for the crop.

"This will be a one-time financial package. Talks with the respective states are on and details will be finalised within seven to ten days," he said.