No proposal under consideration for sugar mills' revival: Government

New Delhi: Government is considering no proposal to provide any special economic package for revival of sick sugar mills in the country, Parliament was informed. The government also said it was the responsibility of private entrepreneurs to take steps to revive their sick/closed sugar units, while state governments are concerned about public and cooperative mills.

"No special economic package for revival of sick sugar mills is under consideration of the government," Minister of State for Food Raosaheb Patil Danve said in a written reply in the Lok Sabha. The sugar industry is facing liquidity crunch due to poor realisation from sale of sugar in view of surplus domestic output in the last four seasons and low exports in the wake of subdued international sugar market, he said.

The government has already announced interest-free loan of Rs 6,600 crore and raw sugar export incentive to ensure payment of cane arrears to farmers, he added. As per the data placed before Parliament, as many as 189 sugar mills were shut down, while 513 units were operational in the 2013-14 season (October-September). To a separate question on the sugarcane price issue, the Minister said that a committee has been set up to examine the methodological issues including the cost concepts of support price of sugarcane.

"The committee is yet to submit the recommendations to the government," he said. India, the world's second biggest producer but largest consumer, is estimated to produce 25.05 million tonnes of sugar in the ongoing 2014-15 season, as against 24.4 million tonnes in the 2013-14 season.