• Page last updated on: 11 February 2019
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The Sugar Development Fund (SDF)

Sugar Development Fund (SDF) was established in the year 1982, through an act of Parliament. It is being utilized presently to grant loans to the sugar mills for facilitating the rehabilitation and modernization/ Bagasse based co-generation power projects/ production of anhydrous alcohol or ethanol from alcohol/ conversion of existing ethanol plant into Zero Liquid Discharge (ZLD) plant and development of Sugar cane. The loans are provided at a concessional rate of 2% below the prevailing bank rate).

SDF is also being utilized for defraying expenditure for the purpose of building up and maintenance of buffer stock of sugar, internal transport and freight charges to the sugar factories on export shipments of sugar, financial assistance to sugar factories towards interest on loan given in terms of any scheme approved by the Central government from time to time, marketing and promotion service for raw production, interest subvention on scheme for extending soft loan to sugar mills, production subsidy to sugar mills to offset cost of cane and facilitate timely payment of cane price dues to farmers.