ADVANCE PAYMENT OF SDF SUBSIDY TO SUGAR
FACTORIES
Sugar factories will
be paid 75 per cent of buffer subsidy from the Sugar Development
Fund (SDF) payable for the entire period in advance. This decision
has been taken by the Ministry of Consumer Affairs, Food and Public
Distribution to facilitate early liquidation of cane price payments
or cane price dues by the sugar factories directly to the cane
growers. Necessary provisions in the SDF Rules are being notified
shortly. As per the existing practice the Government makes buffer
subsidy payments on quarterly basis even though the buffer stock
was required to be held for a longer period.
Shri Sharad Yadav,
Minister of Consumer Affairs, Food and Public Distribution has
pointed out that this decision will apply in respect of a buffer
stock of 20 lakh metric tonnes of sugar currently being maintained.
Government is likely to incur an expenditure of about Rs. 412
crore from the Sugar Development Fund as buffer subsidy for the
entire period and about Rs. 300 crore is likely to be paid as
advance payments.
Sugar factories
are paid a buffer subsidy from the Sugar Development Fund towards
expenditure incurred by them on storage, insurance and interest
charges. The buffer subsidy so paid is to be used by sugar factories
for payment of price for sugarcane purchase or for liquidating
the arrears of cane price payments.
