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An informal group of ministers, headed by Agriculture Minister Sharad Pawar, is scheduled to hold the second round of meeting on Friday to discuss a bailout package for cash-starved sugar mills and to ensure timely payments to cane growers. Chief ministers of Uttar Pradesh, Maharashtra, Tamil Nadu and Karnataka have also been invited for the meeting to discuss the package, sources said.
An informal committee of Group of Ministers has been set up by the Prime Minister to look into the issues concerning the sugar industry, including the interest-free loans.
Besides Pawar, Finance Minister P Chidambaram, Petroleum Minister Veerappa Moily, Food Minister K V Thomas and Civil Aviation Minister Ajit Singh are members of the group. Sources said Prime Minister Manmohan Singh has directed the GoM to come up with a solution to support the industry so that they are able to make timely sugarcane payment to growers.
Farmers in Maharashtra and Karnataka are demanding Rs 300 per quintal for sugarcane, while Uttar Pradesh has insisted that mills pay Rs 280 per quintal this year.
