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Prices continue to fall, surplus sugar production owing to favorable monsoon next season.
The surplus production of sugar this year has increased woes of sugarcane producers and millers. For consumers it is good time but for others involved in process of production this is bad time. The next crushing season will begin with additional 53 lakh tonne sugar at stock. The favourable climatic conditions will increase sugarcane production next year also. On this background farmers are worried for getting FRP from millers. The millers are also worried to get good price for sugar in the market.
As per the prediction of ‘Indian Sugar Manufacturing Association’ 2.61 crore sugar production was expected this year but now the revised estimate the production is likely to reach 3 crore tonne.
Immediate Remedies Required
* Sugar should be purchased at Rs 32 per kg
* Export subsidy to sugar mills
* Buffer stock of 40 lakh tonne should be created
* Next year emphasis should be on ethanol production
* Ethanol should be purchased at reasonable price
* Provision should be done to pay bills to mills after purchase of ethanol
* Government should bear transportation cost to carry sugar outside Maharashtra
Pressure on Government
Farmers in the country are upset with the central government. After elections in Karnataka, the elections are scheduled for Madhya Pradesh, Rajasthan and Chhattisgarh. The sugarcane producing farmers from these states are meagre. But next year there will be Lok Sabha elections. Maharashtra, Karnataka, Uttar Pradesh, Tamil Nadu and Bihar are the states where sugarcane cultivation is taken up. The cane producing farmers are awaiting arrears of crores of rupees at present. Farmers have turned up to cane cultivation following low market for other crops. The cane cultivation area has almost increased by one and half times in Maharashtra alone. Favourable monsoon next year will help in increasing sugar production. Delay in farmers getting FRP will impact the central government. Government will have to face the wrath. The pressure on government is increasing to pay export subsidy or disburse loan without interest to pay FRP to farmers.