Sugar industry seeks bailout package

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Mumbai: Sugar industry in Maharashtra has sought a bailout package from Maha Vikas Aghadi government to come out of the financial crisis and also to compete with Uttar Pradesh and other sugar-producing states.

Sanjay Khatal, Managing Director of Maharashtra State Cooperative Sugar Factories Federation Ltd (MSCSFF) said, “There is an urgent need for the restructuring of all loans including loans from the Sugar Development Fund.”

“In order to compete with mills from UP, the government needs to provide a transport grant of Rs 250 per quintal. It will help mills to sell in UP and other states in North India,” Khatal further added.

Agreeing that the sector is financially under the burden, state finance minister Jayant Patil said, “Due to FRP payment and no hike in sugar prices, the sugar industry is in financial stress. Industry wants restructuring of loan and if possible more incentives.”

Sugar production in Maharashtra will be impacted in season 2019-2020 as the state had been gripped with drought and flood.

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