CCEA sanctions interest free loans to sugar mills

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In December 2013, CCEA (Cabinet Committee of Economic Affairs) has announced a interest free loans for sugar mills which have been facing a huge debt on account of high cane costs and bearish sugar price. It is estimated around Rs. 34000 million has been the payment arrears towards farmers. The loans will help the industry reduce around Rs 500 crore annually of interest burden in the next 5 years. The industry eagerly waits for the Government’s help to reduce some of the surplus sugar stock as well as take immediate steps to rationalize cane pricing policy. CCEA has also removed quantitative restrictions on sugar exports