Centre extends soft loan window by 4 weeks for beleaguered sugar mills

Banks to consider soft loan application of sugar mills that would have cleared by March 26 at least 25% of sugarcane payables as on February 28

The Union government has extended the soft loan window for beleaguered sugar sector by another four weeks. The move is likely to ease some pressure on mills baulked down by stiff and piling arrears.

Under the fresh notification issued by the union department of food and public distribution, the banks could consider the soft loan application of sugar mills that would have cleared by March 26 at least 25 per cent of sugarcane payables as on February 28.

Their payables would be computed on the basis of the centrally announced Fair and Remunerative Price (FRP) of sugarcane, which