Sugar mills seek more time to clear unsold quota

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The National Federation of Cooperative Sugar Factories (NFCSF) on Monday requested the government to extend the period for sugar sale quota and declare a limited quota for next month. NFCSF sought more time to clear the unsold sugar quota as sales have been hit due to the Covi-19 pandemic.

The cooperative sugar mills’ body claims that cooperative sugar factories are finding it difficult to sell the sugar fixed by the Central Government at the rate of Rs 31 per kg and thus it has impacted the economic cycle. Mills have not been able to sell even fifty per cent of the quota.

In a released statement, NFCSF said, “The government fixes sugar sale quota every month based on production figures of mills across the country so that all small and big mills can sell sugar. However, a review of the quotas released in the last six months, sugar sales and lapsed quotas, it seems that the quota of co-operative sugar mills has remained unsold almost 50 per cent and only half of the quotas received could be sold and that too at Rs 31 per kg. But even at this rate, cooperative sugar mills are finding it difficult to sell.”

“As a result of all this, the co-operative sugar mills have been under stress due to the amount of blocked in the sugar stock and the daily rising interest burden on them, which has led to stagnation of farmers’ cane bills, staff salaries and clearing other overdue payments”, NFCSF further added.

The central government announced a record sugar quota of 22 lakh tonnes in April. This month’s April quota is 4 lakh tonnes more than the average of 18 lakh tonnes announced in the last five year.

According to NFCSF President Jaiprakash Dandegaonkar, “While the sugar consumption got affected due to the nationwide lockdown imposed in March last year and thus shut down all confectionery, soft drinks, chocolates, biscuits and sweetmeats business and reduced sugar sales by nearly 1 million tonnes. This will adversely affect the sale of sugar. The NFCSF has brought the issue to the notice of the Central Government and requested to extend the period for sale of quota sugar and declare a limited sugar quota for next month.”

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