The Cabinet at a meeting on Wednesday approved Rs 6,000 crore interest-free loan to sugar mills for making payments to cane farmers.
Earlier, Indian Cooperative reported that former Union Agriculture Minister Sharad Pawar is likely to lead a delegation to meet Prime Minister Narendra Modi to discuss help for the beleaguered sugar industry in Maharashtra.
In Maharashtra Vijaysinh Mohite-Patil, MP and president of the Maharashtra State Cooperative Sugar Factories Federation has decided to call on the state Cooperation Minister Chandrakant Patil to seek clarity on the Rs 2,000 crore loan announced for the industry by the govt.
Shares of sugar companies surged on Wednesday after the Cabinet approved an interest-free loan package for the mills which are struggling to pay cane dues to farmers.
Shares of Shree Renuka Sugars, Bajaj Hindusthan, Sakthi Sugars and Oudh Sugar Mills surged between 12-14 per cent.