Modi 3.0 100-day plan: NFCSF urges central government to give top priority to sugar industry

Former minister and President of the National Federation of Cooperative Sugar Factories (NFCSF), Harshvardhan Patil, addressed a press conference held in Maharashtra, highlighting significant developments in the sugar industry. Patil informed that among the two cooperative ministers in the central cabinet, Murlidhar Mohol from Pune has been appointed as the Minister of State in the Ministry of Cooperation. Mohol’s assignment to the Sugar Department is anticipated to yield benefits for the sugar industry, fostering hope for the resolution of industry-related issues.

Patil further discussed the pre-GST taxation system, elucidating that sugar and molasses sales by sugar mills incurred taxes, contributing to the Sugar Development Fund (SDF). However, post-GST implementation, the SDF scheme was discontinued, leaving numerous mills nationwide with an outstanding loan of Rs 1,352 crore. He mentioned that we contacted the central government and have waived off interest of Rs 650 crore. Now, the remaining amount will be restructured. More than 27 sugar mills in the state will benefit from this restructuring.

Highlighting another pivotal development, Patil shared that on December 6, 2023, the central government issued a notification imposing a ban on ethanol production from B-heavy molasses, alongside juice and syrup. This decision coincided with the country’s sugar mills holding a stockpile of 7.5 lakh metric tons of B-heavy molasses, which remained stagnant for three months. No other product could be made from this stock. Therefore, we wrote a letter to the Union Minister of Cooperation, Amit Shah, and demanded permission for ethanol production from B-heavy molasses; otherwise, this molasses would go to waste. He said that the central government had granted permission for ethanol production from B-heavy molasses 15 days ago.

He said, “Currently, the central government is implementing a 100-day action plan. Our demand is that the sugar industry be given importance in this 100-day action plan. Because it is an industry that contributes to social and economic development. We request the central government to prioritize the sugar industry.”

Additionally, NFCSF has advocated for an increase in the sugar Minimum Support Price (MSP) to Rs 42 per kilogram.

The press conference also saw the presence of National Federation of Cooperative Sugar Factories (NFCSF) MD Prakash Naiknavare, underlining the collaborative efforts to address industry challenges and foster growth.


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