ISMA wants cheaper loans from sugar fund

With a general fall in interest rate regime and as part of the promised restructuring of loans, sugar industry has demanded that interest rates for credit taken from the sugar development fund (SDF) should be slashed.

"In the case of sugar industry, restructuring would also involve a fresh look at the outstanding soft term loans from the SDF as also future loans there from", director general, Indian Sugar Mills Association, Shanti Lal Jain, said here.

He said the rate of interest of nine per cent on sugar sector soft term loan appears to be excessive in the present situation.

Since the contribution from SDF was in the nature of promoters' capital, normally, this amount should have been interest free, he added.