Govt opens on export subsidy to UP sugar mills, says Paswan

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On the issue of cane arrears of UP farmers the Food Minister Ram Vilas Paswan said that the government is open to extending export subsidy on raw sugar and provide additional interest-free loans to mills to clear cane arrears, said the PTI report.

Further, he made it clear to mill owners that threats are not the right way to solve problems because farmers have other options and they do not have.

Facing payouts of around Rs 4,500 crore as cane arrears to farmers, private millers in UP, the second largest sugar producing state, have threatened to shut operations this year if cane prices are not linked to sugar rates.

Speaking on the matter, Paswan told PTI that, "The government is open to extending export subsidy on raw sugar and will provide additional interest-free loans to mills to clear cane arrears provided mills give the guarantee."

However, he expressed confidence that the stand off between the UP government and the mills over cane price policy would be resolved but criticised the millers' decision for first agreeing to pay higher cane price fixed by the state and later showing their inability to make payment to farmers.

Story first published: Wednesday, October 8, 2014, 23:00 [IST]
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