ANNOUNCEMENT 06 Jun 2018
The Union Cabinet of Ministers has approved several interventions to stabilize prices of sugar in the domestic market.
NUMBER OF INTERVENTIONS
Official release of the Press Information Bureau
Cabinet approves interventions to deal with the current crisis in the sugar sector
NOTIFICATION S.O. 3523(E)
On 6 June 2018, the Indian Union Cabinet approved several interventions, listed below, to stabilize prices of sugar. The total cost of these interventions has been estimated at INR 7000 crore (~ USD 1046.96 million).
* INR to USD conversion as on 6 June 2018 - INR 66.86 / USD
On 6 June 2018, the Indian Union Cabinet approved several interventions to stabilize prices of sugar. These include a scheme to provide loans to distilleries, at reduced interest rates, for installation of incineration boilers in existing distilleries or for setting up of new distilleries will be formulated. The government will bear the cost of the interest subvention up to a maximum of INR 1332 crore (~ USD 199 million) over a period of five years for bank loans amounting to INR 4440 crore (~ USD 664 million).
In an official gazette released on 19 July 2018, it was specified that the interest rate subsidy will be at the rate of 6% per annum or 50% of the interest charged, whichever is lower. Further, the total quantum of bank loans has been divided almost equally between loans given to existing distilleries and loans given for setting up new distilleries. For individual applications, the loan amount is capped at INR 20 crore (~USD 3 million) for installation of new boilers and at Rs. 80 crore (~USD 12 million) for setting up a new distillery.
* INR to USD as on 6 June 2018 - INR 66.86 / USD