Centre presents debt remedy to sugarcane farmers with smooth loans
To facilitate payment of dues of sugar cane farmers for the cutting-edge sugar season, the Cabinet Committee on Economic Affairs (CCEA) on Thursday accredited the thought to provide smooth loans to the extent of about Rs 7,900-10,540 crore to the sugar enterprise.
To liquidate dues of sugarcane farmers, the government will endure the interest subvention fee up to 10 percent to the quantity of Rs 553 crore to Rs 1,054 crore for three hundred and sixty-five days,” an official assertion said after the CCEA assembly chaired through Prime Minister Narendra Modi. The authorities have mandated that banks will attain from the sugar mill the listing of farmers with a bank account information with the number of cane dues to be paid so that the contributions are directly spent 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 generators to clean their dues, the CCEA also determined that the authorized gentle loans might be provided to those gadgets which have already cleared at least 25 in step with a cent in their first-rate dues in the sugar season 2018-19. Surplus sugar manufacturing over home intake requirement during the last sugar season 2017-18 (October 2017-September 2018) adversely affected the liquidity position of the sugar turbines resulting in building up of cane charge arrears of farmers, which reached an alarming level of Rs 23,232 crore in May 2018.
The authorities stated that surplus production turned into expected within the modern sugar season 2018-19, which has also affected sugar mills’ liquidity function, resulting in the building up of cane rate arrears of farmers, which have reached the level of Rs 20,159 crore as on February 22. To enhance the liquidity of sugar turbines to permit them to clear cane dues of farmers, the government extended a minimal selling fee of white sugar from Rs 29 per kg to Rs 31 in line with kg with effect from February 14.