Cabinet approves Rs 6,000 crore loan to sugar mills

The Cabinet on Wednesday approved Rs 6,000 crore interest-free loan to sugar mills to make payments to sugarcane farmers, Road Transport and Highways Minister Nitin Gadkari said.

"We have taken this decision in the interest of farmers," Gadkari told the media after a Cabinet meeting.

Asked about the government's long term plans for the sugar industry, he said: "For long term, the government is in discussion."

The major sugar producing states are Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Bihar, Gujarat, Haryana, Uttarakhand and Punjab.

The stocks of sugar companies rose following the Cabinet approval.

The stocks of Balrampur Chini were up 5.49 per cent, Shree Renuka Sugars 11.17 per cent, Dhampur Sugar 5.17 per cent and Andhra Sugars 6.32 per cent in the Bombay Stock Exchange (BSE).