Subsidy to sugar units will remain

  • 25/03/2008

  • Free Press Journal

Against the background of a glut in sugarcane production, the State Government has decided to continue with last year's decision to provide transport subsidy to sugar factories to provide relief to sugar factories in varied parts of the state. A meeting chaired by Chief Minister Vilasrao Deshmukh okayed the decision 'in principle' to continue with the Rs two per tonne, per km subsidy for transport of sugarcane. A final decision on the issue will be taken at a meeting of the state cabinet soon, an official said. This year, Maharashtra is faced with the problem of plenty as far as sugarcane is concerned, with around 17 lakh tonne sugarcane likely to be in excess of the crushing capacity of sugar factories. The government is also likely to allow adjacent sugar mill to crush excess sugarcane in a factory's area.