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After one and half month of state’s announcement situation is standstill, State commission demands subsidy.
After falling of sugar prices in domestic and international markets, Co-operative minister made announcement to purchase sugar at Rs 3200 per quintal. Even after one month of announcement, government has not taken any step in this regard. As per minister Deshmukh’s announcement, the quota of all sugar mills will be reduced by 25%. The proposal of purchasing sugar is likely to be tabled before council of ministers and all millers are waiting for this.
This year sugar production has crossed the expectations and 45 lakh metric tonne excess sugar has been produced and millers are searching for markets to sell the excess sugar. To assist millers, government has waived the export duty but at international level the prices of sugar are Rs 2100 per quintal and if millers sell sugar at this price, they will be at loss. The millers are reeling under financial pressure and to make way out of this minister Deshmukh on February 27 declared to purchase sugar from mills.
Minister Deshmukh declared to purchase 25% of sugar from every mill at the rate of Rs 3200 per quintal. This decision will help millers to pay FRP to farmers. But after one and half month has passed, the implementation of the decision has not been taken. Now the proposal will be tabled before council of minister for approval and after getting approved, government will start process of purchasing sugar. At the same time the state co-operative bank has reduced the assessment of sugar and there are chances that sugar mills may face short margin. Hence government’s decision is important for sugar sector.
FRP amounting to Rs 576 crore pending
All the mills in the district have completed the cane crushing season. Farmers got FRP for the first month of cane crushing. Later on millers paid installment less than FRP due to falling prices in the market. As a result 22 sugar mills in the district are yet to pay FRP of Rs 576 crore. If government delays the process of purchasing sugar, this will affect producers. Those who have borrowed loans from banks are facing problems as they are waiting for FRP.
State sugar federation demands subsidy of Rs 500
Central government has fixed quota for every sugar factory to export sugar. Based on this state will be exporting six lakh metric tonne of sugar. Even after exporting this amount of sugar, there will be excess sugar in the market. State sugar federation has demanded to increase quota to ten lakh metric tonne sugar. The organization has also demanded Rs 500 subsidy per tonne. The memorandum of demands has been handed over to chief minister Devendra Fadnavis recently.