Under various ethanol interest subvention schemes, Rs.1,535 crore released to NABARD for payment of interest subvention until February 28, 2025
The government is boosting ethanol production by providing financial assistance to sugar mills and grain-based plants. Minister Nimuben Jayantibhai Bambhaniya stated that ₹1,535 crore has been allocated for ethanol plant interest subvention. Ethanol production has improved sugar mills’ financial health and benefited farmers. In Kushinagar, 1,000 farmers received training, and improved sugarcane seeds and agrochemicals were distributed.
The government is taking various steps to boost ethanol production and is also providing assistance to sugar mills, including grain-based plants, to enhance output.
In response to an unstarred question in the Rajya Sabha, Minister of State for Consumer Affairs, Food & Public Distribution, Nimuben Jayantibhai Bambhaniya, stated, “The Central Government has provided financial assistance in the form of Interest subvention inter alia for setting up of ethanol plants with sugar mills under various ethanol interest subvention schemes notified from 2018 to 2022. Under various ethanol interest subvention schemes, Rs. 1,535 crores has been released to NABARD for payment of interest subvention to eligible sugar mills/grain based plants (as on 28.02.2025) to eligible sugar mills including grain based plants.”
She further added, “Production of ethanol by sugar mills has created an additional source of revenue thereby improving the financial condition of the sugar industry. Also, Sugarcane farmers are being adequately rewarded by means of Fair and Remunerative Price (FRP) of sugarcane. FRP is linked to a basic recovery rate of sugar, with a premium payable to farmers for higher recoveries of sugar from sugarcane.”
Addressing the steps taken to resolve challenges faced by sick sugar mills, such as overstaffing, lack of professional management, and high working capital costs, particularly in Kushinagar in 2024, she said, “In Kushinagar district, 1,000 sugarcane farmers were given training in modern sugarcane farming through Sugarcane Research Centre in the year 2023-24. 4,675 quintals of improved seeds from the Research Centre for New Sugarcane Varieties, 9,802 quintals of base seeds from the base nursery and 54,070 quintals of primary / certified seeds from the primary nursery were distributed to the Sugarcane farmers. Apart from the above, agrochemicals have been made available as agricultural inputs to 4,834 sugarcane farmers for seed/soil treatment and ratoon management.”
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Source : ChiniMandi
