Maharashtra's sugar industry ‘sour’ as policy issues remain unresolved

The Union budget has left the sugar industry embittered as it has failed to address many crucial policy issues of the sector, which provides annual revenue of about Rs4,381crore to the Union government.

“This sector has to be decontrolled as 64% of sugar goes to the organised sector. There is an urgent need for export and import of sugar. The government has not allowed sugar export despite better international rates. We were also expecting a hike in the prices of levy sugar, which is just Rs1,834 per quintal,” said Chhatrapati Rajaram cooperative sugar factory’s managing director, PG Medhe.

Vijay Kakade, a professor in Shivaji University’s economics department, said the sugar industry has to enter the energy sector for tapping new avenues of blended oil fuels.

The budget has announced concessions on excise duty kits required for the conversion of fossil fuel vehicles into hybrid ones. Besides, there is an announcement for a national mission for hybrid and electric vehicles.

“Serious efforts are needed for generating and using alcohol for blended oil fuels for hybrid engines,” Kakade said.

Maharashtra Rajya Sahkari Sakhar Sangh managing director, Prakash Naiknavare, said the budget is “farmer friendly” and cane farmers are expected to get some benefits. “However, there is nothing specific for the sugar industry,” he said.

The budget has reduced the basic customs duty on agriculture machines to 2.5% from 5%. “Thus, cane harvesters, which are becoming essential due to labour shortage, will be cheaper,” he said, adding that Rs200 crore has been allocated for the national clean energy fund, which can be utilised for cogeneration plant at the sugar factories.

Swabhimani Shetkari Sanghatana district president, Bhagwan Kate, said the government’s schemes had not done much for cane farmers.

source: dna