Image Credits: 21Food
Sugar factories in the Maharashtra are facing financial problems following the excess production of sugar during this crushing season. To relieve the pressure of the sugar factories, the state federation of cooperative sugar factories have urged the state government to create a buffer stock of 25 lakh tonne sugar to tackle excess sugar production this year.
The federation has also urged that central government should create a buffer stock of 50 lakh tonne sugar. The federation has put this demand to chief minister Devendra Fadnavis.
The sugar production in Maharashtra has set new record for this crushing season but lack of demand has resulted into falling prices of sugar in the market. The warehouse are full to their capacity and mills are facing problems to pay farmers their dues.
In such situation it is necessary for state and central government to intervene. Central government has taken decision to export sugar.
6.21 lakh tonne sugar will be exported from Maharashtra. But in international market the prices of sugar are lower than that of domestic market. There is difference of Rs 13 per kg in the production cost of sugar and its market price.
Millers are ready to bear loss of Rs 3 and state and centre should bear loss of Rs 5 each. Along with this the state should create buffer stock of 25 lakh tonne sugar, demands the federation.
PURCHASE SUGAR FROM MILLS
The state federation had demanded that the state government should purchase 10 lakh tonne sugar required under Public Distribution System at the rate of Rs 3200 per quintal plus GST directly from sugar mills. In any condition, the state should not purchase sugar from traders.
STATE SHOULD FIX MININUM SUPPORT PRICE
The state should fix a minimum support price for the buffer stock at Rs 3200 per quintal. Based on this state should make provision of Rs 400 crore for factories for next six months at the rate of 10% interest on the buffer stock.