Centre presents debt comfort to sugarcane farmers with soft loans
To facilitate price of dues of sugar cane farmers for the modern-day sugar season, the Cabinet Committee on Economic Affairs (CCEA) on Thursday accepted the thought to provide soft loans to the volume of approximately Rs 7,900-10,540 crore to the sugar industry.
“With a view to liquidating dues of sugarcane farmers, the authorities will endure the hobby subvention price up to 10 in step with a cent to the quantity of Rs 553 crore to Rs 1,054 crore for 12 months,” an official declaration said after the CCEA assembly chaired via Prime Minister Narendra Modi.
The government has mandated that banks will gain from the sugar mill, the list of farmers with bank account information with the extent of cane dues to be paid so that the contributions are without delay paid into the bills of the farmers on behalf of the sugar generators.
“Subsequent balance if any will then be credited into the mill’s account,” it stated.
To incentivize the turbines to clean their dues, the CCEA also decided that the accepted gentle loans could be supplied to those devices that have already cleared at least 25 according to cent of their terrific dues within the sugar season 2018-19.
Surplus sugar production over home intake requirement during the last sugar season 2017-18 (October 2017-September 2018) adversely affected the liquidity role of the sugar turbines resulting in building up of cane charge arrears of farmers which reached to an alarming stage of Rs 23,232 crore in May 2018.
The government stated that surplus manufacturing was estimated in the current sugar season 2018-19 which has additionally affected the liquidity role of sugar mills resulting in building up of cane rate arrears of farmers which have reached to the extent of Rs 20,159 crore as on February 22.
To improve the liquidity of sugar turbines to permit them to clear cane dues of farmers, the government multiplied minimum promoting rate of white sugar from Rs 29 consistent with kg to Rs 31 according to kg with impact from February 14.