Steps to increase the liquidity of the sugar mills enabling them to clear cane dues
NEW DELHI: The Central Government has taken the following steps to increase the liquidity of the sugar mills enabling them to clear cane dues of the sugarcane farmers in the country:-
- Extended financial assistance to the sugar mills in the form of interest free loan of Rs. 6600 crore through banks (SEFASU 2014), for sugar season 2013-14.
- Providing incentive for production and export of raw sugar during the sugar seasons 2013-14 and 2014-15.
- Extending soft loan of Rs. 6000 crore from banks with interest subvention and moratorium for one year for sugar season 2014-15.
- Smoothened the supply chain procedure for EBP and fixed its remunerative price.
- Waived excise duty on ethanol to be supplied for EBP in 2015-16 sugar season.
- Import Duty increased from 25% to 40%.
- Processing time under Advance Authorization Scheme reduced from 18 months to 6 months.
- The “Duty Free Import Authorization” scheme (DFIA) for sugar withdrawn to prevent possible leakages.
These mentioned initiatives seek to mitigate liquidity crisis of the sugar industry and enable it to make timely payment of cane dues of the farmers. No additional funds have been earmarked for this purpose. This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Shri Ram Vilas Paswan in a written reply in Rajya Sabha today.