Coronavirus Lockdown 3.0: Sharad Pawar writes to PM Narendra Modi seeking bail out for sugar factories

Veteran politician and NCP supremo Sharad Pawar has appealed Prime Minister Narendra Modi to bail out sugar industry hit due to COVID-19 pandemic.

For latest updates and live news on coronavirus, click here

In a letter to PM Modi, the NCP President said even before the lockdown the government took a series of initiatives like MSP, the export of sugar, buffer stock and interest subvention on Capex for ethanol production.

Pawar, a former Union Agriculture Minister, suggested increasing MSP on sugar ranging from Rs 3,450 to Rs 3,750 with grade-wise increment.

He also requested for a one-time provision of Rs 650 per tonne on average cane crushed during the last two years.

Pawar called for the conversion of outstanding working capital as short-term loans and rescheduling all term loans for 10 years with a moratorium of two years on the lines of Mitra committee recommendations.

The relief sought includes treating sugar mills’ distilleries as Strategic Business Units ( SBUs) and on a standalone basis, and banks financing the Ethanol projects sanctioned under the Interest Subvention Capex Scheme announced by the Central Government in 2018.

He said that there should be a provision of funds for clearing export incentives and buffer stock expenses pending since 2018-19 and 2019-20.