PRODUCTION SUBSIDY SCHEME 2015

The Government vide notification dated 2.12.2015 extended production subsidy @ Rs. 4.50 per quintal to sugar mills to offset cost of cane and facilitate timely payment of cane price dues of farmers for the sugar season 2015-16. Consequent upon sugar prices reaching substantially higher levels than required for operational viability of the sugar industry, the Central Government had withdrawn production subsidy scheme vide notification dated 19.05.2016. Since the production subsidy scheme was withdrawn before time, the Central Government has decided to disburse the performance based production subsidy for cane crushed during 2015-16 sugar season till the tenancy of the scheme vide notification dated 12.09.2016. Under the scheme, so far Rs. 520 crores have been disbursed as production subsidy to 213 sugar mills.

SOFT LOAN TO SUGAR MILLS, 2015

Extended financial assistance of Rs.4213 crore to mills through banks under Soft loan scheme, which were directly credited to farmers account on behalf of sugar mills. An amount of Rs. 425 Cr released to the SBI for subvention of interest on the above loan. About 32 lakh farmers have been benefited.

SEFASU, 2014

The Government on 3.1.2014 notified a Scheme for Extending Financial Assistance to Sugar Undertakings (SEFASU-2014) envisaging interest free loans by bank as additional working capital to sugar mills, for clearance of cane price arrears of previous sugar seasons and timely settlement of cane price of current sugar season to sugarcane farmers. Rs. 6485.69 crore has been disbursed under the scheme. Interest burden on this loan, for five years is borne by the Government through Sugar Development Fund. An amount of Rs. 2496 Cr has been released to the banks for subvention of interest on the loan availed by the sugar factories

INCENTIVE SCHEME FOR MARKETING AND PROMOTION OF RAW SUGAR PRODUCTION RAW SUGAR PRODUCTION, 2014

The Government notified a scheme on 28.02.2014 allowing incentive for marketing and promotion Services of raw Sugar production targeted for export during sugar season 2013-14 which was incentive amount is to be used for clearance of cane price dues of cane growers. Rs.425 crore has been disbursed under the scheme.