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Sharad Pawar seeks PM Modi's intervention in bailing out crisis-hit sugar industry

In a letter written to Prime Minister Narendra Modi which was sent on Thursday, the veteran leader asked from the intervention of the PM to bail out the industry from the crisis “aggravated exponentially” by the lockdown.

Sharad Pawar seeks PM Modi's intervention in bailing out crisis-hit sugar industry
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Nationalist Congress Party (NCP) chief Sharad Pawar on Friday wrote to Prime Minister Narendra Modi seeking a bail out for the sugar industry which has been affected by the nationwide lockdown due to the coronavirus outbreak. 

In a letter written to Prime Minister Narendra Modi which was sent on Thursday, the veteran leader asked from the intervention of the PM to bail out the industry from the crisis “aggravated exponentially” by the lockdown. 

“Raised concerns through a letter to Hon. Prime Minister Narendra Modi and requested his urgent intervention to bail out #sugar industry from crisis aggravated exponentially by unprecedented nationwide lockdown in the wake of pandemic COVID-19 (sic),” Sharad Pawar tweeted. 

Even before the lockdown, Pawar noted that Narendra Modi had taken important policy initiatives for crisis-hit sugar industry including MSP, Export fo Sugar, Buffer Stock and Interest Subvention on Capex for ethanol production duly supported by financial measures. 

In his letter, Pawar informed about a memorandum submitted by the Maharashtra State Cooperative Sugar Factories Federation Limited (MSCSFFL) which talked about the crisis which has gripped the sugar industry. 

Pawar stated that the MSCSFFL has demanded the increase MSP of sugar ranging from ₹3,450 to ₹3,750 with grade-wise increment. Moreover, the federation suggested that the provision of a one-time grant of ₹650 per tonne on average cane crushed during the last two years. 

For relief measures, the federation also said that provision of funds could be created for clearing export incentives and buffer stock expenses pending since 2018-19 and 2019-20. 

“Conversion of outstanding Working capital into Short term loan and rescheduling all term loans for 10 years with a moratorium of two years on the lines of Mitra Committee recommendations,” one of many relief measures tweeted for sugar industry by Pawar. 

Moreover, the federation has urged that the sugar mills’ distilleries should be treated as strategic business units (SBUs). The banks should also finance the Ethanol projects sanctioned under the Interest Subvention Capex scheme announced by the centre in 2018. 

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