The sugar mills are undergoing tremendous stress due to lack of capacity utilisation as a result of lack of sugarcane to crush.
Sugar mills in India may be in for some good news as Union Finance ministry is considering a proposal to restructure their debt, reports Business Standard. The sugar mills are undergoing tremendous stress due to lack of capacity utilisation as a result of lack of sugarcane to crush.
Representatives from the sector met with Finance Minister Arun Jaitley on Tuesday to stress the need for a debt restructuring. The total debt of sugar sector stands close to Rs 50,000 crore. Following the meeting with the FM ISMA President T Sarita Reddy expressed satisfaction. She said “The FM gave us a patient hearing. He sounded positive. The FM said that the key issue is debt restructuring. He marked a copy to the finance department to take it forward.”
The issue of lower production was also discussed in the meeting along with keeping the sector under the lowest goods and services slab touted to be around 5 percent. Though sugar prices have started rising the industry is unable to capitalise because of low availability of canes to crush.
Read more here: Finance Ministry considering debt restructuring for sugar sector