INVC NEWS
New Delhi,
In order to facilitate clearance of cane price arrears of previous sugar seasons and timely settlement of cane price of current sugar season to sugarcane farmers, the Central Government on 03.01.2014 has notified a Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU-2014) envisaging interest free loans worth Rs. 6600 crores by bank as additional working capital to sugar mills. Under the Scheme, all loans were to be sanctioned by 30.06.2014 and disbursed by 30.09.2014. Out of sanctioned loan amount, loan amounting to Rs. 6420.09 crores have been disbursed upto 30.09.2014. Utilization certificates to the effect that the amount has been utilized for the payment of cane price dues are to be submitted by the sugar mills within three months from disbursement. Hence, the beneficiaries sugar mills under the Scheme have time upto 31st December, 2014 to utilize the loan for cane payment arrears. Another Scheme allowing incentive for marketing and promotion services of raw sugar production targeted for export market was notified by the Government on 28.02.2014. No incentive has so far been disbursed to any mill under the Scheme. This information was given by the Minister of State for Consumer Affairs, Food and Public Distribution, Shri Raosaheb Patil Danve
The Minister said that the Central Government has regularly taken up the matter of cane price arrears with the State Governments. Meetings were held with the apex bodies of sugar Industry and State Government representatives to clear cane price dues of sugarcane farmers. Due to measures taken by the Government cane price arrears are declining.
Shri Raosaheb Patil Danve said that the State Governments of sugarcane producing States have been requested to rationalized sugarcane pricing policy by adopting revenue sharing formula recommended by Dr. C. Rangarajan.
