This notification, issued by the Ministry of Consumer Affairs, Food and Public Distribution, Department of Food and Public Distribution, addresses the payment of cane dues to farmers for the sugar season 2018-19. It amends the existing scheme for extending soft loans to sugar mills, initially notified on March 2, 2019, under Notification No. 142019SPI. The amendment modifies two key parameters related to loan eligibility and disbursement.
Firstly, Para 2(ii) is revised to state that banks will only consider loan applications from sugar mills that have cleared at least 25% of the cane price payable, calculated on the Fair and Remunerative Price (FRP) basis, by March 26, 2019, for the current sugar season 2018-19. This 25% threshold is based on cane price payable as of February 28, 2019.
Secondly, Para 2(viii) is revised to detail the loan disbursement process. Once a loan is sanctioned and formalities are complete, the bank will obtain a list of farmers from the sugar mill, including bank account details (borrowable account numbers for those with credit facilities and regular savings/current account numbers for those without). The bank will then directly remit the allocated funds into the farmers' accounts on behalf of the sugar mill, based on cane dues computed on FRP. Any remaining balance after farmer payments will then be credited to the mill's account.
The notification is issued under No. 142019S PI, dated March 13, 2019, and is signed by Suresh Kumar Vashishth, Joint Secretary.
Key Entities Referenced
Ministry of Consumer Affairs, Food and Public Distribution: The Indian government ministry responsible for consumer protection, food security, and public distribution.
Department of Food and Public Distribution: A department within the Ministry of Consumer Affairs, Food and Public Distribution responsible for policies related to food and public distribution.
New Delhi: The location of the notification, and the capital of India.
Scheme for extending soft loan to sugar mills: A government program designed to provide financial assistance to sugar mills.
Central Government: The Union Government of India.
FRP: Fair and Remunerative Price payable computed on FRP basis
SURESH KUMAR VASHISHTH: Joint Secretary who signed the notification
Mayapuri, New Delhi: Location of the Government of India Press.
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No. 85] NEW DELHI, WEDNESDAY, MARCH 13, 2019/PHALGUNA 22, 1940
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1715 GI/2019 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]
MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(Department of Food and Public Distribution)
NOTIFICATION
New Delhi, the 13th March, 2019
No. 1(4)/2019-S P-I.—The Central Government, with a view to facilitate payment of cane dues of the
farmers for the current sugar season 2018-19 has notified the Scheme for extending soft loan to sugar mills
vide notification No. 1(4)/2019-SP-I dated 02.03.2019.
2. Now, in pursuance of para 6 of the said notification dated 02.03.2019, Central Government has
decided that Para 2(ii) and 2(viii) of the notification may be read as under:-
Para 2 (ii): “The bank will consider the loan application of only those sugar mills which would have cleared
latest by 26.03.2019 at least 25% of the cane price payable computed on FRP basis as on 28.02.2019 for
current sugar season 2018-19”.
Para 2(viii): “Once the loan is sanctioned and necessary formalities for disbursal are completed, the Bank will
obtain from the respective sugar mill the list of farmers alongwith bank account details, borrowable account
numbers of farmers who have availed credit facility from the banking system, and regular saving bank or
current account numbers in respect of farmers who have not availed any credit facility, and the extent of cane
dues to be paid computed on the basis of FRP and shall directly remit the funds allocated into the accounts of
farmers on behalf of the sugar mill. Subsequent balance, if any, will then be credited into the mill’s
account”.
SURESH KUMAR VASHISHTH, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.