Sugar mills from Maharashtra are demanding a subsidy of Rs 150 per quintal on the domestic sale of sugar to compete with the sugar mills from Uttar Pradesh. The millers are planning to approach Prime Minister Narendra Modi and Union minister Nitin Gadkari to seek subsidy.
A meeting of sugar millers was convened by Maharashtra deputy chief Ajit Pawar during which the decision was taken as the millers in Maharashtra are losing market share to Uttar Pradesh.
According to the news report published in Financialexpress.com, Prakash Naiknavare, MD National Federation of Cooperative Sugar Factories said, “Mills from Maharashtra have lost their traditional market share in the north and northeast to mills from Uttar Pradesh after the state overtook Maharashtra in sugar production. Mills from Uttar Pradesh produce ‘M’ grade of sugar which commands a premium of Rs 1.5 per kg, and since there is no grade-wise minimum support price (MSP), the ‘M’ grade is sold at the same price as ‘S’ Grade.”
Speaking about sugarcane production, then according to the Indian Sugar Mills Association, “503 sugar mills were crushing sugarcane during 2020-21 SS as compared to 457 mills, which operated last year. As on date, 282 mills have stopped crushing this year. As compared to 221 mills operating as on 31st March, 2021 this year, 186 mills were operating on corresponding date last year. 277.57 lakh tonnes of sugar have been produced till 31st March 2021 as against 233.14 lakh tonnes produced last year by 31st March 2020, i.e. higher by about 44.43 lakh tonnes.”