Question : SUGAR INDUSTRY IN U.P.



(a) whether the Government propose to revive sugar industry in Uttar Pradesh which are on the verge of closure;

(b) if so, the details thereof; and

(c) if not, the reasons therefor?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI HUKUMDEO NARAYAN YADAV)

(a) to (c): Yes, Sir. In order to help the sick sugar mills for revival, the Government has taken the following measures:


(i) Extends loans at concessional rate of interest to sugar mills from Sugar Development Fund (SDF) for cane development, modernization and expansion in the exiting capacity;


(ii) A Committee has been constituted to examine the cases of sick cooperative sugar mills and to recommend revival package for potentially viable units.


(iii) The Sugar Development Fund Rules 1983 have been amended to provide financial assistance at concessional rate of interest, to potentially viable sick sugar mills, of cooperative sector.

Furthermore, loans have been granted to the sugar mills of U.P. for various purposes from SDF as under:

(Rs. in crores)
Scheme No. of sugar mills Amount sanctioned Amount disbursed
Modernization/Rehabilitation 91 502.39 445.98 Cane Development 164 165.58 93.48