State Sugar Federation Demands Assistance Of Rs 500 Crore To Export Sugar

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Image Credits: The Dollar Business

State sugar federation has demanded increase in the quota of state to export sugar from 6 lakh tonne to 10 lakh tonne and has urged state government assistance of Rs 500 crore to export sugar.

The federation, in a letter to chief minister Devendra Fadnavis has made these demands. As per the federation, the sugar factories will have to bear loss of Rs 13000 per tonne and millers are ready to bear loss of Rs 3000 and state and centre should bear loss of Rs 5000 each.

Sugar federation has called meeting in this regard on April 4 to discuss the problems faced by the sugar sector. The federation has given the memorandum of their demands to chief minister Fadnavis.

6.21 lakh tonne sugar will be exporting from Maharashtra this year. Taking in view the sugar produced in the state and sugar available with mills, the state should grant permission to export 10 lakh tonnes.

Mills will have to bear loss of Rs 13 per tonne during export of sugar. If mills export sugar bearing the loss, they will not be able to pay FRP to farmers. To help mills come out of this financial burden government should provide export subsidy, says the memorandum.

Among the other demands include, the state should create buffer stock of 25 lakh tonne sugar, provision of Rs 400 crore at the rate of 10% interest on buffer stock and state should ask centre to create buffer stock of 50 lakh tonne sugar.

There is huge gap between the money generated after exporting sugar and the loan taken from bank which may result in short margin for mills.

The federation has also demanded that the state government should purchase 10 lakh tonne sugar required for Public Distribution System from sugar mills at the rate of Rs 3200 per quintal including all taxes and not to purchase from traders.

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