Centre to provide interest free loans to Sugar factories

Mysore, July 26 (UNI) Union Agriculture Minister Sharad Pawar today said that the Centre has taken a decision to provide interest free loans to sugar factories which have been facing financial crisis for the last 15 years and unable to pay the sugarcane growers, He said that various measures have been taken to redress the sugar factories and sugarcane growers problems. Financial support would be extended to sugar factories to clear dues to sugarcane growers. "This would help in bailing out both sugar factories as well as the sugarcane growers." Mr Pawar was speaking after inaugurating a four-day valedictory of centenary celebrations of the Cooperative Movement in the Karnataka.

He said that due to excess production of Sugarcane the sugar factories had incurred loss and were unable to pay for the sugarcane purchased.

Mr Pawar said that to bail out sugar factories it was proposed by the Union government to make it compulsory for Oil Industries to purchase five percent of the ethanol products from the Sugar factories.

He said that sugar production has touched 300 lakh tonnes this year against demand for 190 lakh tonnes. Besides there was stock of 40 lakh tonnes. About possibility of export, Mr Pawar said that other sugarcane producing countries like Brazil and South Africa have excess stock.

Complementing the Karnataka Chief Minister for providing Rs 25,000 subside per hectare of sugarcane not harvested as sugar factories failed, Mr Pawar said that "unless and until both the Centre and State government take necessary steps to arrest the crisis the sugar factories have no alternative but to close down.

UNI