Painting a gloomy picture about the financial strength of sugar mills, Sugar Minister H.S. Mahadev Prasad on Wednesday appealed to the Centre to help bail out sugarcane growers by providing a subsidy of Rs. 200 to Rs. 300 for a tonne of sugarcane.
The Minister told mediapersons here that sugar mills were in financial distress due to a crash in sugar price in the international market. Pointing out that the State government last year extended an incentive of about Rs. 150 for a tonne to sugarcane growers besides tax exemption of Rs. 100 a tonne to sugar mills, he appealed to the Centre to show similar gesture.
He also urged the Centre to buy sugar from mills for distribution under the public distribution system so as to help mills to clear their sugar stocks.
When repeatedly being queried about the government’s proposed action on defaulting sugar mills, the Minister said the government would continue to confiscate the sugar stocks of such mills.
