Saturday, April 4th, 2020

81 Applications from Sugar Mills for Cane Development Loan

INVC,, Delhi,, Applications from 81 sugar factories for sanction of cane development loan were received from the State Governments (including the State of Maharashtra) duly recommended during 2009-10 and 2010-11 (upto 30.11.2010). As per SDF Act 1982 and Rules made thereunder, Cane Development loans are given to sugar factories for various purposes, including for rearing of seed nursery, incentive to cultivators to switch over to improved varieties, ratoon management, irrigation schemes etc. in their assigned cane areas. Cane growers are indirect beneficiaries of such loans. A short term Cane Development SDF loan scheme was announced in July, 2009 for purchase of seed, fertilizers and pesticides. The loanee sugar mills were required to pass on the loan in cash or kind to the sugarcane growers within stipulated period. SDF Rules also provide for defraying expenditure on internal transport and freight charges on export shipment of sugar to sugar mills. The amount received by the sugar factories in this regard was required to be utilized for making payment of cane price arrears for the sugar seasons 2006-07 and 2007-08. Further, the Central Government notified ‘Scheme for extending financial assistance to sugar undertakings 2007’ on 07.12.2007 providing for interest subvention on loans taken by sugar factories for paying cane price arrears to farmers. This helped payment of cane arrears of 2006-07 and 2007-08 sugar seasons by sugar mills to sugarcane farmers. This information was given by Prof. K.V. Thomas, Minister of State for Agriculture, Consumer Affairs, Food & Public Distribution,

[caption id="attachment_21208" align="aligncenter" width="223" caption="Sugar Mills for Cane Development Loan"]Sugar Mills for Cane Development Loan[/caption]



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