TAD NewsDesk, New Delhi: Government has declared that no financial aid will be provided to the Sugar mills for capacity expansion under the Sugar Development Fund (SDF).
A food ministry official noted,
“The decision has been taken keeping in view the prevailing market conditions of the sugar sector having surplus stocks, despite diversion of sugar and cane juice for production of ethanol. We will review it after fiscal 2021-22.”
The country has 735 sugar mills with a total annual sugar production capacity of 34 million tonnes. The government has so far disbursed ₹8,840.53 crore to sugar mills since 1982 when the SDF was set up.
The official added,
“Funds have been used to scale up capacity besides modernisation of plants. So far total default has been ₹2,821 crore, including ₹1,164 crore as principal amount. We are expediting process to recover the dues from defaulting mills.”
He said the production of sugar in the 2020-21 season would likely be 30.2 million tonnes — 4.2 million tonnes more than the annual domestic consumption.
Hence by looking at the present scenario, the government has taken this decision.
Source: The Economic Times
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