Centre has decided to provide additional interest-free loan of up to Rs. 4,400 crore to sugar mills and hike import duty on sweetener. The decision is aimed at enabling the cash-starved industry pay their huge arrears to sugarcane farmers.

Food Minister Ram Vilas Paswan told reporters in New Delhi that import duty on sugar will be increased to 40 per cent from 15 per cent and export subsidy will be extended till September this year to give relief to the sugar industry.

The industry owes Rs. 11000 crore to cane growers most of whom are from Uttar Pradesh.

The Minister said, efforts will be made to implement mandatory five per cent ethanol blending with petrol and subsequently achieve ten per cent blending target.