Date:27/07/2007 URL: http://www.thehindu.com/2007/07/27/stories/2007072752630600.htm

Andhra Pradesh

State to stand guarantee for sugar factories

Special Correspondent

Loan for modernisation, expansion and cogeneration at cooperative factories

HYDERABAD : The State Government will stand guarantee to a Rs. 266 crore loan from Centre for modernisation, expansion and cogeneration at cooperative sugar factories.

This was announced to the Legislative Council by Sugar Minister J. Geeta Reddy during question hour on Thursday.

Not satisfactory

She said the exports of sugar from the State were not satisfactory although the Centre agreed to give a handholding by offering an incentive of Rs. 1,400 a tonne.

The high handling charges and less number of importers were a deterrent to exports. Ms. Reddy appealed to organisations representing sugarcane farmers to call off their ‘chalo Delhi’ programme on July 29 appreciating the steps taken by the State Government.

Incentives

The cropped area under sugarcane went up by 30 per cent due to incentives offered by the Government. The Government was also compensating farmers where sugarcane stock was left unsold.