Sharad Pawar India News

NCP President Sharad Pawar requests PM Modi’s urgent intervention to bail out sugar industry from crisis

Sharad Pawar, President of Nationalist Congress Party :

  • Raised concerns through letter to Prime Minister and requested his urgent intervention to bail out sugar industry from crisis aggravated exponentially by unprecedented nationwide lockdown in the wake of pandemic COVID19.
  • I have enclosed a detailed letter from the Chairman of Maharashtra State Co-op. Sugar Factories Federation Ltd. and drew attention of Hon. @PMOIndia to the earnest request of the Sugar Industry.
  • Even before the lockdown, seeing crisis hit sugar industry, the Prime Minister was kind enough to take some important policy initiatives like MSP, Export of Sugar, Buffer Stock and Interest Subvention on Capex for Ethanol production duly supported by financial measures.
  • As COVID19 crisis are worsening day by day , some immediate relief measures are suggested by the federation.
    • Provision of funds for clearing export incentives and buffer stock expenses pending since 2018-19 and 2019-20.
    • Increasing MSP of Sugar ranging from Rs 3450 to Rs 3750 with grade wise increment.
    • Provision of one time grant of Rs 650 per tonne on average cane crushed during the last two years.
    • Conversion of outstanding Working capital into Short term loan and rescheduling all term loans for 10 years with a moratorium of two years on the lines of Mitra Committee recommendations.
    • Treating sugar mills’ distilleries as Strategic Business Units ( SBUs) and on Stand Alone basis the banks should finance the Ethanol Projects sanctioned under the Interest Subvention Capex Scheme announced by the Central Government in 2018.
  • Hoping that the Honourable PM would look into the matter and initiate necessary relief measures to resolve the crisis worsened due to Pandemic COVID19.

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