Centre to provide interest free loans to sugar factories: Pawar

Mysore, July 26 (UNI) The Government today said the Centre had decided to provide interest free loans to sugar factories facing financial crisis for the last 15 years and were unable to pay the sugarcane growers.

Speaking after inaugurating a four-day valedictory of centenary celebrations of the Cooperative Movement in the Karnataka, Union Agriculture Minister Sharad Pawar said 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 said.

Due to excess production of sugarcane, sugar factories incurred loss and were unable to pay for the sugarcane purchased, he added.

To bail out sugar factories it was proposed by the Union Government to make it compulsory for oil industries to purchase five per cent of the ethanol products from the sugar factories.

Mr Pawar said sugar production had touched 300 lakh tonne this year against demand for 190 lakh tonne. Besides there was stock of 40 lakh tonne.

About possibility of export, Mr Pawar said other sugarcane producing countries like Brazil and South Africa had excess stock.

Complementing the Karnataka Chief Minister for providing Rs 25,000 subsidy per hectare of sugarcane not harvested due to sugar factories failure to pay the dues, Mr Pawar said ''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