Government to receive lower GST collection on sugar


Pune: Heavy rain in Pune, Sangli, Satara and Kolhapur districts, the sugar belt of Maharashtra, have majorly hit the sugarcane crops. Also, farmers have uprooted sugarcane in the severely drought-affected regions of the state to feed their animals as other green fodders were not available. In Marathwada, Vidarbha, and Khandesh sugarcane have been diverted as a fooder. Following the floods and drought in the state, sugar output is likely to hit. According to the industry estimates, sugar production in the state for season 2019-2020 is expected to remain at 65 LMT as against 107 LMT in season 2018-2019.

With the decline in sugar output, the government may witness a reduction in GST revenue from the sugar industry. As compared to the previous season, the government is expected to receive Rs 650 crore less GST in sugar season 2019-2020.

Not just Maharashtra, even Karnataka faced the flood fury which caused harm to sugarcane crop, and ultimately it will low down the sugar production in the state. So, the overall government may see a downfall in GST revenue.

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