To facilitate the price of dues of sugar cane farmers for the current sugar season, the Cabinet Committee on Economic Affairs (CCEA) on Thursday authorized the concept to offer smooth loans to the volume of approximately Rs 7,900-10,540 crore to the sugar industry.
“To liquidate dues of sugarcane farmers, the government will undergo the hobby subvention cost up to 10 in step with a cent to the quantity of Rs 553 crore to Rs 1,054 crore for 365 days,” an official assertion stated after the CCEA assembly chaired by using Prime Minister Narendra Modi.
The government has mandated that banks will gain from the sugar mill the list of farmers with financial institution account details with the extent of cane dues to be paid so that the contributions are without delay paid into the accounts of the farmers on behalf of the sugar turbines.
“Subsequent balance, if any, will then be credited into the mill’s account,” it said.
To incentivize the mills to clean their dues, the CCEA additionally decided that the accredited tender loans will be provided to those gadgets that have already cleared at least 25 consistent with a cent of their extraordinary dues inside the sugar season 2018-19.
Surplus sugar manufacturing over domestic consumption requirement over the last sugar season 2017-18 (October 2017-September 2018) adversely affected the liquidity role of the sugar mills ensuing in constructing up of cane fee arrears of farmers alarming level of Rs 23,232 crore in May 2018.
The authorities said that surplus manufacturing became anticipated within the cutting-edge sugar season 2018-19, which has also affected the liquidity position of sugar generators resulting in the construction of cane rate arrears of farmers, which have reached the extent of Rs 20,159 crore as of February 22. To improve the liquidity of sugar generators to enable them to clean cane dues of farmers, the government elevated the minimal selling fee of white sugar from Rs 29 consistent with kg to Rs 31 per kg with impact from February 14.