Govt reviews sugar sector related issues

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Paswan directs officials to issues necessary guidelines for timely payments of outstanding dues of sugarcane farmers

The Union Minister for Food & Public Distribution and Consumer Affairs, Ram Vilas Paswan held a review meeting with Secretary, Sudhanshu Pandey and other senior officials of the Department of Food & Public Distribution in New Delhi.

In the review meeting, issues like sugar production, outstanding payments arrears of sugarcane farmers, ethanol production and other related issues were discussed.

Paswan directed officials to issue necessary guidelines for timely payments of outstanding arrears of sugarcane farmers. The Minister was informed that this year sugar production is expected to reach 270 LT.

The Government is reimbursing carrying cost of Rs.1674 crore towards maintenance of buffer stockof 40 LMT of sugar. Providing assistance @ Rs 10448/MT to sugar mills to meet expenses on export of 60 LMT of sugar with the likely expenditure of about Rs.6,268 crore.

Soft loans of about Rs. 18,643 crores are being extended through banks to 362 sugar mills and molasses-based standalone distilleries for enhancement and augmentation of ethanol production capacity, for which an interest subvention of about Rs.4,045 crore for five years is being borne by the Government. So far, loans of about Rs 3,148 Cr have been sanctioned to 64 sugar mills and loans of about Rs 1,311 Cr have been disbursed to 38 sugar mills. Department of Financial Services is being requested from time to time to impress upon banks to expedite their loan applications.

Sugar mills having distillation capacity are also being encouraged to divert B-heavy molasses and sugar syrup for producing ethanol to utilize their capacity to maximum extent. Those sugar mills which do not have distillation capacity are being encouraged to produce B-Heavy molasses and to tie up with distilleries which can produce ethanol from B-Heavy molasses.

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