Krishi VaartaOutlook Agriculture
Government to Offer further Relief Package to Sugar Mills!
The central government can provide the sugar mills with another relief package before the general budget to speed up the increasing payment of sugarcane farmers. According to sources, mills can receive a soft loan of approximately Rs. 10,000 crore. It is also preparing to increase the minimum sales price of sugar.
According to a senior official of the Food Ministry, the central government will lend six per cent interest to sugar mills for five years. This loan will be given to the sugar mills to increase the production capacity of ethanol and to set up new ethanol plants. In addition, the central government can increase the minimum selling price of sugar from Rs. 29 to 32 per kg. According to sources, this can be decided at the forthcoming Cabinet meeting.
The outstanding payment of sugarcane farmers is increasing day by day. In particular, the sugar mills of Uttar Pradesh and Maharashtra are unable to pay sugarcane farmers' dues from time to time. As a result, the outstanding amount has reached approximately 11,000 crores during 2018-19 (October to September) so far. It is believed that if the situation remains the same, the dues can reach up to 20,000 crore rupees by the end of April. In September 2018, the centre gave the sugar industry a package of Rs. 5,500 crore.
Source - Outlook Agriculture, 08 January 2019