UP govt to provide soft loans to sugar mills

The Cabinet also gave the green signal for assistance of Rs 4.50 per quintal for purchase of sugarcane done in the 2017-18 season.

By: Express News Service | Lucknow | Published: September 26, 2018 6:10:54 am
UP govt to provide soft loans to sugar mills Chief Minister Yogi Adityanath said that the decision was taken as there is a huge difference between the cost of sugar product and cost of sugar in the international market, which is lower. (File)

The UP Cabinet on Tuesday gave the green signal for providing financial assistance of Rs 4.50 per quintal for purchase of sugarcane done in the 2017-18 season, which would directly go to the accounts of farmers against the pending payment, and to the accounts of the concerned sugar mills in case the payments have been made by them.

Cabinet also gave in-principal approval to a scheme for providing financial assistance to private sugar mills in the form of soft loans; Rs 4,000 crore has been set aside for the same under supplementary grants.

Chief Minister Yogi Adityanath said that the decision was taken as there is a huge difference between the cost of sugar product and cost of sugar in the international market, which is lower, thus leading to a burden on sugar mills as well as non-payment of dues.

Adityanath further said that the decision to provide financial assistance of Rs 4.50 per quintal of sugarcane purchase would put a burden of Rs 500 crore on the state exchequer. Moreover, since November 30 is the deadline set for sugar mills to pay farmers their dues, the state government has decided to provide soft loans to sugarcane farmers at an interest of 5 per cent for 5 years with the condition that the amount would directly go to accounts of farmers.

“Another condition would be that only those who have paid at least 30 per cent of their dues to farmers would be able to avail of this loan,” said the CM, adding that in case of default, the interest percentage would increase.

The Cabinet also cleared the proposal to hand over setting up of a sound and light show at Gorakhnath Temple to Telecommunication Consultants India Ltd under Swadesh Darshan Scheme, and lighting work at the ghats in Varanasi to the central PWD under the Prasad scheme.

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