Abinash Verma of ISMA says the government will be bearing the interest for just one year and that doesn't seem to be an interest-free loan in the true sense of the word. Earlier, about one-and-half-years ago, the government had given a similar loan and was willing to bear the interest for five years.
M Manickam of Sakthi Sugars says mills may be in a position to clear Rs 4,000-5,000 crore, with their own resources. So, this Rs 6,000 crore will be an addition.
Abinash Verma of ISMA says the basic problem that the industry is facing is on account of surplus sugar which will be almost 10-10.5 MT from beginning of next season â€“ which is 4-4.5 MT more than what the government norms require to carry, putting pressure on sugar prices.
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