Sugar mills bailout package – Sharad Pawar writes to PM Modi

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Nationalist Congress Party (NCP) supremo Sharad Pawar said that he has sent a letter to the PMO India regarding the confusion and ambiguity been created due to initially publicized bail out package for sugar mills to be of the size of Rs. 8500 crores and subsequently mentioned as Rs. 7000 crores in the press note published by PIB.

“If one goes by the net financial outgo from the exchequer of Govt. of India on each of the decisions, it appears to be Rs. 4047 crores. Therefore, to say that the bail out package is of the magnitude of Rs. 8500 crores or Rs. 7000 crores seems to be incorrect.

It is mentioned that the reimbursement will be credited into farmer’s account which is not practical. It should be made directly to the sugar mills as earlier, as they are storing sugar by incurring expenses, the mills would release payment to the farmers on time and in full.

To encourage production and use of ethanol, increasing price to at least Rs. 53 per liter is the right step. In light of increased international crude oil price, with the help of reducing 18% GST, the accruals could be loaded on current basic price of ethanol of Rs. 40.85 per liter.

The dire need of the hour is to push as much sugar out of country as possible. Therefore, I have insisted on announcing export policy as early as possible for exporting 80 Lakh Tons under MIEQ to be achieved within next 18 months for which the current cane incentive of Rs. 5.50 per qtl. needs to be doubled.

Due to precarious financial condition at the sugar mills, they are not able to service the outstanding past loans which need to be rescheduled and restructured with a moratorium of 3 years. The mills may not be able to take up the ensuing crushing season due to financial needs.”