Sugar Factories To Be Paid 75 Per Cent Subsidy In Advance

New Delhi, Sept 17 | Updated: Sep 18 2003, 05:30am hrs
The government has decided to pay sugar factories 75 per cent of subsidy earmarked for maintaining buffer stocks from the Sugar Development Fund (SDF) payable for the entire period in advance.

This is to facilitate early liquidation of dues to farmers on account of deferred cane price payment by the sugar factories directly to the cane growers. Necessary provisions in the SDF Rules will be notified shortly.

As per the existing practice, the government pays subsidy for buffer stocking on quarterly instead of a longer period.

Union minister for consumer affairs, food and public distribution, Sharad Yadav said, this decision would apply in respect of a buffer stock of 20 lakh metric tonne of sugar maintained.