Exclusive | Big news for sugar sector! Relief package likely coming soon; 5 cr farmers to benefit too

The government may announce a relief package worth Rs 10000-Rs 12000 cr for the sugar industry. The announcement which is likely to come in 15-20 days will be a major relief for the sector, Zee Business' Chetan Bhutani reports.

The modalities of the sugar sector package are almost ready, Bhutani said and added that the plan is being prepared to give the sector a much needed relief. The package is likely to clear dues of the industry which have been there since last year, he averred.

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 The government has heard the demands of the sugar industry and has already started work on that. Consumer Affairs Minister Ram Vilas Paswan has also expressed concern over the plight of the sugar industry in his meeting with the ministry officials, Bhutani said.

The government is planning to provide soft loans to the sugar mills. Among other measures, the government is also planning to increase the sugar export quota of companies from the existing 45 lakh metric tons to 60 lakh metric tons, he said. This will enable the companies to clear their excess stock, he added.

The discussions on increasing the export quota are already on. A draft cabinet note will be prepared by the ministry which will be shared with other ministries for further consultations. The final approval will be made only after it comes to the cabinet, Bhutani said. All this can take 15-20 days, he added.

The relief package is also likely to benefit over 5 cr farmers. The government will be giving the farmers cash through the sugar mills. Major chunk of the relief package will go to the sugar mills, Bhutani said adding that the mills will be making the payments to the farmers.

Through the soft loans, the government will be giving sugar mills an option to avail the credit facility from the market.

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The minister has recently said that the sugar sector should not be allowed to fall.