Advertisement

HindustanTimes Fri,19 Dec 2014

Cabinet okays Rs. 6,600-cr bailout for sugar mills

HT Correspondent, Hindustan Times  New Delhi New Delhi, December 19, 2013
First Published: 20:49 IST(19/12/2013) | Last Updated: 00:35 IST(20/12/2013)

The Cabinet has approved a scheme of interest-free loans worth Rs. 6,600 to sugar mills as a bailout package. This will help mills pay off accumulated dues to farmers.

Advertisement

The loans will be utilised to pay arrears to farmers to the tune of Rs. 3,000 crore, the Indian Sugar Mills Association said.

Crushing of cane by mills was delayed by a mosnth in November after millers refused to pay higher cane price, citing a financial crunch.

India is the world’s second largest sugar producer and the biggest consumer. Retail prices of the sweetener are a sensitive issue. An inter-ministerial panel had been set up by Prime Minister Manmohan Singh to recommend a bailout package for the sugar industry soon after a crisis over payment in Uttar Pradesh last month.

The food ministry had proposed that loans worth Rs. 6,600 crore would be provided by banks to sugar mills exclusively for sugarcane payment. Banks will lend equivalent to the excise duty paid by mills in the last three years.


Advertisement
more from Business

Tata, Singapore Air venture Vistara to take off on January 9

Based in New Delhi, the full service Vistara will begin operations with a fleet of new Airbus A320-200s with 148 seats, Tata SIA Airlines Ltd said in a statement. Vistara will offer flights to Mumbai and Ahmedabad initially.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved