Govt asks RBI to remove sugar from negative list as virus hits consumption

Such a move would spur infusion of fresh liquidity and working capital in sugar mills, facilitating speedy settlement of cane arrears

Against the backdrop of a drastic fall in sugar consumption because of the Covid-19-triggered lockdown and the accumulation of farmer arrears, the central government is set to advise the Reserve Bank of India (RBI) to remove the beleaguered sugar sector from its negative list.

This would pave the way for the infusion of fresh liquidity and working capital in sugar mills through an enhanced cash credit limit (CCL), thus facilitating speedy settlement of arrears.

Last month, the UP sugar industry and Sugarcane Development Principal Secretary Sanjay