LS passes bill for Rs 4,610 crore package for sugar mills
Lok Sabha on Tuesday passed a bill that will enable the government to grant Rs 4,610 crore financial package and interest-free loans to the sugar mills facing difficulty in making payment to farmers.
By PTI |
NEW DELHI: Lok Sabha on Tuesday passed a bill that will enable the government to grant Rs 4,610 crore financial package and interest-free loans to the sugar mills facing difficulty in making payment to farmers.
The House gave its approval to the Sugar Development Fund (Amendment) Bill, 2008, which will also allow the government to raise a cess of Rs 25 per quintal on sugar as against Rs 15 a quintal earlier.
"With the increase in cess, the sugar prices can go up by 9-10 paisa a kg though it will benefit farmers, consumers and sugar industry by stabilising sugar production over a period," Agricultural Minister Sharad Pawar said whilised with financial measures, with five per cent of the amount to be provided for from the Union Budget while the remaining seven per cent would be paid off from the Sugar Development Fund.
The interest subvention of 7 per cent from the Fund on loans given by banks and financial institutions to sugar factories is estimated at Rs 3,818 crore and interest subvention for 7 per cent per annum for 4 years would be Rs 792 crore.
The House gave its approval to the Sugar Development Fund (Amendment) Bill, 2008, which will also allow the government to raise a cess of Rs 25 per quintal on sugar as against Rs 15 a quintal earlier.
"With the increase in cess, the sugar prices can go up by 9-10 paisa a kg though it will benefit farmers, consumers and sugar industry by stabilising sugar production over a period," Agricultural Minister Sharad Pawar said whilised with financial measures, with five per cent of the amount to be provided for from the Union Budget while the remaining seven per cent would be paid off from the Sugar Development Fund.
The interest subvention of 7 per cent from the Fund on loans given by banks and financial institutions to sugar factories is estimated at Rs 3,818 crore and interest subvention for 7 per cent per annum for 4 years would be Rs 792 crore.
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