Govt took steps to increase liquidity of the sugar mills for clearing cane dues
Updated: Jul 24, 2015 05:25:51pm
New Delhi, July 24 (KNN) With the view to help the sugar mills reeling under crisis, the Central Government has taken various steps to increase the liquidity of the sugar mills enabling them to clear cane dues of the sugarcane farmers in the country.
The government extended financial assistance to the sugar mills in the form of interest free loan of Rs 6,600 crore through banks (SEFASU 2014), for sugar season 2013-14, Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan informed Parliament today.
The government also provided incentive for production and export of raw sugar during the sugar seasons 2013-14 and 2014-15 and extended soft loan of Rs 6000 crore from banks with interest subvention and moratorium for one year for sugar season 2014-15, he said.
He further pointed that the government smoothened the supply chain procedure for EBP and fixed its remunerative price.
The excise duty on ethanol to be supplied for EBP in 2015-16 sugar season was waived off and import duty was also increased from 25 per cent to 40 per cent.
The Processing time under Advance Authorization Scheme was reduced from 18 months to 6 months, while the “Duty Free Import Authorization” scheme (DFIA) for sugar was withdrawn to prevent possible leakages.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,” Paswan said. (KNN Bureau)
The government extended financial assistance to the sugar mills in the form of interest free loan of Rs 6,600 crore through banks (SEFASU 2014), for sugar season 2013-14, Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan informed Parliament today.
The government also provided incentive for production and export of raw sugar during the sugar seasons 2013-14 and 2014-15 and extended soft loan of Rs 6000 crore from banks with interest subvention and moratorium for one year for sugar season 2014-15, he said.
He further pointed that the government smoothened the supply chain procedure for EBP and fixed its remunerative price.
The excise duty on ethanol to be supplied for EBP in 2015-16 sugar season was waived off and import duty was also increased from 25 per cent to 40 per cent.
The Processing time under Advance Authorization Scheme was reduced from 18 months to 6 months, while the “Duty Free Import Authorization” scheme (DFIA) for sugar was 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,” Paswan said. (KNN Bureau)
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