3 MT of additional Sugar buffer at Rs 590 cr

New Delhi, June 21 (UNI) The Government today approved creating an additional buffer stock of 3 million tonnes of sugar for a period of one year, taking the total buffer stock to 5 million tonnes.

''This will entail an expenditure of Rs 590 crore, which is available with the Sugar Development Fund,'' Finance Minister P Chidambaram told reporters after the meeting of the Cabinet Committee on Economic Affairs that gave the approval.

Meanwhile, the rescheduling of bank loans to sugar mills will be decided by a Committee headed by Nabard Executive Director S K Mitra, which held its first meeting on June 7. The Committee will submit its report by this month-end.

The extension of other rescheduling of bank loans has been referred to a Group of Ministers, Mr Chidambaram said.

He said the decision to create additional buffer stock was taken in view of the bumber sugar production, which was now estimated to be not less than 27.5 million tonnes instead of 21 million tonnes.

''Somebody has to hold the additional sugar. Whatever is exportable we are exporting it and besides the international price of sugar has also come down,'' he said. ''This will provide relief to sugar industry and sugarcane farmers.'' UNI