Commodities, Featured

Sugar Commodity News: Food Ministry Gets Ready For Second Sugar Relief Package

The food ministry has gotten ready for a second relief package for the sugar industry, and this proposal has been made in the Cabinet looking for loan incentives for Ethanol makers. sugar commodity news confirms that this is in addition to the sugar package declared in June.

The Cabinet note is anticipated to be floated this week, said an official of the food ministry. Cane harvest is in progress and the government needs mills to get more engaged in ethanol production, according to the food ministry official.

A loan relief was given to almost 114 sugar mills in June 2018. From that point, more mills had demanded parallel benefits and the secretaries committee was looking into the issue. The committee has affirmed the proposal and the food ministry will now seek approval from the cabinet, added the official.

The sugar mills may get up to 6 percent interest subvention on the loans they receive to arrange new ethanol production units or increase the capacity of the already existing units, as per sugar commodity news.

The choice to improve the domestic Ethanol production is focused not only on diminishing the stress in the sugar industry but also towards limiting the colossal oil import bill.

The government had approved interest subvention of 6 percent for ethanol producers on loans up to 4500 Crore Rupees, in June. But, our country’s present ethanol production remains lesser than the overall demand.

Recently, the government has been accentuating on changing to biofuels and focuses to boost Ethanol blending in petrol and diesel to 20 percent from the current 10 percent by the end of 2030, as reported on The Economic Times.

As the committee has accepted the proposal and seeks approvals from the cabinet, the cabinet’s approval is expected to be floating this week, according to the sugar commodity news reported on the Commodity Online.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
coinmag

Bindhu Mol. G loves writing news articles. She excels in SEO articles, technical articles and academic articles. She covers commodities and mutual fund news for OWLT Market.

Leave a Comment

Your email address will not be published. Required fields are marked *