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Mr Akhilesh Prasad Singh, Minister of State for Agriculture, with Mr Mangal Singh, President, STAI, at the 8th joint annual convention of sugar technologists associations in Hyderabad on Saturday. At extreme right is the Andhra Pradesh Sugar Minister, Ms J. Geetha Reddy. — Satish H.

Hyderabad , Aug. 13

THE poor response from the sugar industry to the Sugar Development Fund (SDF) for the modernisation or expansion of plants has disappointed the Union Government.

Addressing a national level sugar technologists' convention here on Saturday, Dr Akhilesh Prasad Singh, Minister of State for Agriculture and Consumer Affairs, said there were "very few applications" seeking SDF loans.

The convention was organised by the Sugar Technologists' Association of India (STAI), Deccan Sugar Technologists' Association of India (DSTA) and South Indian Sugarcane and Sugar Technologists' Association of India (SISSTA). The SDF also offered capital assistance up to 50 per cent for research and development and technology upgradation. Besides reducing the interest rates by two percentage points, the Government enhanced the capacity cap to 10,000 tonnes crushed a day (TCD) from the earlier cut-off mark of 5,000 TCD.

He asked the industry to improve the quality of sugar to make it internationally acceptable. Stating that the interest rate is a huge burden on the industry, the Minister said the National Bank for Agriculture and Rural Development (Nabard) is finalising modalities for reducing rates on high-cost borrowings.

Mr Mangal Singh, President of STAI, said the Government had agreed to set up a sugarcane mission to look into specific issues and take a focussed approach. "Modalities are being worked out," he said.

Mr Singh said the country would not be able to produce enough sugar to meet the increasing consumption unless it raises its productivity.

"At present, yield per hectare is in the range of 6.5-7 tonnes. This should change, as the consumption level is expected to go up to 24 million tonnes (mt) in the next five years and 30 mt in the next 10 years," he said.

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Govt disappointed with response to Sugar Development Fund

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