Sugar Development Fund 

Chronicle IAS Note Save

Sugar Development Fund as the name suggests is used to provide for financing the activities for development of sugar industry and for matters connected with it. Sugar Development Fund Act was enacted in 1982 to provide for the Sugar Development Fund.

Sources of Funds in SDF
Funds in SDF comes from the sugar cess imposed by Government on the sugar mills under Sugar Cess Act, 1982 as well as the money allocated by the Central government specifically to this fund during budget.

The Sugar Development Fund Act, 1982 provides for the purposes for which the fund shall be used. Under it, loans are given to sugar factories for modernization-cum-expansion, setting-up of bagasse based cogeneration power projects, manufacture of ethanol from alcohol/molasses, zero liquid discharge (ZLD) distillery projects, case development schemes, etc. Since inception, about Rs 7,500 crore has been disbursed to sugar factories.