May 7, 2015
Sugaronline | http://goo.gl/45kRzK
Sugar Minister H S Mahadev Prasad on Wednesday said processed sugar worth INR100 billion (US$1.56 billion) was lying unsold in godowns across the State, according to India's Deccan Herald newspaper.
Indicating that the sugar market was poor and there could be a delay in disbursing compensation to sugar cane farmers, Prasad said about 3.5 million metric tonnes of the sweetener were lying unsold in godowns. "We have seized godowns of sugar companies which have not paid farmers in Belagavi. There's no one to buy the stocks even during auction," he said.
Prasad said the government owed sugar cane farmers INR9 billion.
"The government has paid INR11.72 billion to sugar cane farmers for the 2013/14 financial year, but INR9 billion is still pending. We will try to disburse the amount as early as possible," he said.
The minister, who recently attended a meeting called by Union Minister for Consumer Affairs, Food and Public Distribution, Ramvilas Paswan, said the State had sought soft loans for sugar industries. "Last year, we received INR9.58 billion as soft loan and we are expecting INR10 billion this year. Soft loans would mean that there will be no interest for the initial three years," he said.
He said the government would seek a relief of INR3 billion-INR4 billion for paying farmers. Besides, it would also request the Centre to buy sugar under the public distribution system and take it as buffer stock.