The SDF Rules 1983 would be suitably amended for the purpose. The obligatory levy quota of sugar for PDS from mills will be reduced from 30 to 15 per cent from this February. The SDF will also extend loans covering 40 per cent of the cost for modernisation of mills and cane development. These loans will carry an interest rate of nine per cent.

The government is making efforts to improve the financial condition of the mills. Union Minister for Food and Public Distribution Shanta Kumar pointed out that the industry would have to resort to hard measures for cost reduction to be viable in future. He suggested that the mills go for power cogeneration and better recovery from cane to achieve this goal. He also emphasised the need for stepping up the quality of sugar for exports. At present 69 mills in the country are closed. Out of these, 19 are in Uttar Pradesh, 18 in Bihar and 10 in Maharashtra.