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Govt rules out loan waiver to sugar mills

Centre on Tuesday ruled out any new package or loan waiver to sugar mills even though their dues to sugarcane farmers have touched Rs 15,893 crore.

Policy Pulse
Publish Date: Mar 15 2016 4:58PM | Updated Date: Mar 15 2016 5:30PM

Govt rules out loan waiver to sugar mills

Centre on Tuesday ruled out any new package or loan waiver to sugar mills even though their dues to sugarcane farmers have touched Rs 15,893 crore. 

 
Food Minister Ram Vilas Paswan, in a written Reply in Lok sabha said that due to surplus output in last four years and depressed prices, liquidity of sugar mills have been affected, which has led to accumulation of cane price arrears of the farmers
 
As on March 5, cane price arrears to farmers reached Rs 15,893.36 crore in over past three years, he said. 
 
Of the total, Rs 13,644 crore is for 2015-16 season, while Rs 1,366 crore is for the 2014-15 season and Rs 882.07 crore for 2013-14 and previous seasons, he added. 
 
Asked if Centre plans to provide any package to improve the condition of sugar mills and guarantee timely payment of cane arrears, Paswan said: "There is no new proposal under consideration of the government to provide any package/ incentive including creation of buffer stocks..."