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| Exchange Disseminated Time 18/11/2015 17:02:50 | Ponni Sugars (Erode) Ltd has informed BSE that :
"The Press Information Bureau - Government of India has announced the decision of the Cabinet Committee on Economic Affairs (CCEA) of November 18, 2015 on direct subsidy to sugarcane growers.
Having regard to the sustained surpluses in sugar production over consumption during the last five years and consequent depressed profitability and stressed liquidity position of the sugar industry, the Central Government has been coming forward from time to time with diverse initiatives for helping the industry and in turn the sugarcane farmers. In furtherance of this, the CCEA has now decided to provide a production subsidy at Rs.45 per tonne of canecrushed. This subsidy will be paid directly to farmers on behalf of the sugar mill and be adjusted against the cane price payable to the farmers towards the Fair & Remunerative Price (FRP) including arrears relating to previous years.
The FRP for sugarcane in the case of our Company for 2015/16 sugar season is Rs.2372.60 per tonne. As against this, the Central Government would directly bear the burden of Rs.45 per tonne and to that extent the Company will benefit by reduced cane cost and improved cash flow." |
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