Union Cabinet approves Rs 6,000 crore interest-free loan to sugar mills [ Current Affairs ]


Sugar mills Union Cabinet approved an interest-free loan i.e. soft loan to the tune of 6,000 crore rupees to enable sugar mills pay arrears to farmers by Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi. Union cabinet also approved hike in prices of Ethanol. According to the Government, interest on the loan will not be charged for a year but the interest will be borne by the Union government from sugar development fund.

  • Union Cabinet also approved promulgation of negotiable instruments ordinance which to allow courts hear dispute of bouncing of cheques in the payee’s location.
  • The money to be paid as arrears to farmers under this loan will be directed credited in Jan Dhan accounts of farmers.
  • Sugar mills in India owe over 21,000 crore rupees to farmers because they were not able to sell sugar stocks which have remained unsold due to falling prices of raw sugar in domestic and international markets.
  • Allowed three plants to produce urea out of Naptha in Madras Fertilizers Ltd (Tamil Nadu), Southern Petrochemicals Industries Corporation (Andhra Pradesh) and Mangalore Chemical and Fertilizers Ltd (Karnataka) respectively.

- Published on: June 17, 2015