April 19, 2017 5:08 PM

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Cabinet approves extension of 2016 Central order in respect of Sugar for 6 months

The Cabinet has given its approval for extending the validity of 2016 Central Order in respect of sugar for a further period of six months from 29th of this month. The decision will enable the State Governments to issue control order with the prior concurrence of Central Government, for fixing stock limits, licensing requirements for sugar, whenever need is felt by them.<br/><br/>This is expected to help in the efforts being taken to improve the availability of sugar to general public at reasonable rates, and control the tendencies of hoarding and profiteering. The decision will be communicated to all the States and Union Territories for further action at their end.<br/>Our correspondent reports that the Government had recently extended soft loan assistance of 4305 crore rupees to the industry to support the sugar sector which has been directly credited to farmers account on behalf of sugar mills through banks benefitting about 32 lakh farmers.<br/><br/>A performance based production subsidy has also been extended 4 rupees 50 paise per quintal of cane crushed which was directly credited to the farmers account on behalf of sugar mills. In order to maintain domestic prices at reasonable levels, the Government has also recently allowed import of a restricted quantity of 5 lakh tone raw sugar at zero duty by millers and refiners having their own refining capacity. This quantity will help the sugar industry to augment their liquidity and enable them to pay cane dues of farmers.

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