After the onion crisis, the state government may find itself in trouble over the sugar issue, as cane farmers have demanded that the state should not implement the decision of the Central government t
After the onion crisis, the state government may find itself in trouble over the sugar issue, as cane farmers have demanded that the state should not implement the decision of the Central government to impose stock limit on sugar millers.
“After deregulating the sugar industry, the Centre is indirectly trying to put stock limits on sugar factories. Due to this, the sugar rates have fallen down by Rs 150 to 200 per quintal. The state government should urgently intervene to provide relief to sugar industry, which is in dire straits,” said Jayprakash Dandegaonkar, the vice-chairman of Maharashtra State Co-operative Sugar Factories Federation (MSCSFF).
Union food minister Ram Villas Paswan has announced imposition of stock limit on sugar mills, allowing them to keep only 37 per cent stock by end September end and 27 per cent stock by end October.
The imposition of stock limit will lead to fall in sugar prices, Mr Dandegaonkar said.
“Due to unfavourable conditions and adverse policies, the sugar industry is in crisis. In the last two months, the sugar rates were Rs 3,400-3,500 per quintal. But due to stock limit reports, the rates have dropped by Rs 150 to 200 per quintal. It has been deliberately done to help sugar traders,” he said.
Maharashtra, which contributes a third of the country’s sugar production, is expected to see a 50 per cent drop in its output during crushing season 2016-17, which begins in October. The sharp fall is attributed to severe drought in sugarcane-growing districts, leading to a decline in plantation.
The preliminary estimates by MSCSFF are for state production of 4.5 million tonnes in 2016-17, against 8.4 mt in 2015-16 and 10.5 mt in 2014-15.
The fall is attributed to drought in cane growing districts. The Federation has projected a decline in cane production to 46 mt in 2016-17, against 74.3 mt in 2015-16.
