LUCKNOW: The Indian Sugar Mills Association (ISMA) on Tuesday welcomed Union government for taking steps to help the sugar industry and sugarcane farmers to come out of the current financial crisis.

President, ISMA, A Vellayan said that adoption of a fixed pricing policy linked to sugar cane price for ethanol procurement has ensured quicker finalization of offers. Also, removal of central excise duty on ethanol has given higher returns to mills/suppliers of around Rs 5 per litre.

The association also hailed centre's decision to move to 10% ethanol blending with petrol which has increased the demand for fuel ethanol to 266 crore litres. Vellayan said that the timely decision in September 2015 to export 4 million tons of sugar, duly fixing an export quota for each sugar mill will help the industry to overcome the financial distress.

He added that an interest free loan of around Rs. 6000 crore to the sugar cane farmers, has resulted in reduction of cane price arrears of Rs 4000 crore.