New Delhi: According to the media report, the government has taken a decision to not to extend soft loans to the sugar mills for at least one year under the Sugar Development Fund (SDF).
As per a news report published in economictimes.com, a food ministry official said that the decision has been taken keeping in view the prevailing market conditions of the sugar sector having surplus stocks, despite diversion of sugar and cane juice for production of ethanol. We will review it after fiscal 2021-22
There are a total 735 sugar mills in the country with an annual capacity of 34 million tonnes. The government has disbursed Rs 8,840.53 crore to sugar mills since the setting up of SDF in 1982.
“The sugar mills use the funds to modernize plants. So far total default has been Rs 2,821 crore, including Rs 1,164 crore as principal amount. We are expediting process to recover the dues from defaulting mills” he further added.