Maha co-operative sugar factories to meet CM on June 10 for aid

Ex-mill price has crashed to Rs 2,100 per quintal and factories are struggling to dispose of their stock ahead of the rainy season

Maharashtra cooperative sugar factories are confronted with a twin problem of high sugar production and constraints on the payment of fair and remunerative price (FRP) to cane growers. The factories are also insisting that the Bharatiya Janata Party (BJP)-led government should provide Rs 2,000 crore as subsidy and not an interest free loan as announced by Chief Minister Devendra Fadnavis recently.

As on date, Maharashtra has produced 10.4 million tonnes of sugar compared with 7.6 million tonnes during the corresponding period a year earlier. As the ex-mill price has crashed to Rs 2,100 a quintal, factories are struggling to dispose of their stock ahead of rainy season.

Further, they fear that they will not be in a position to pay the revised FRP to Rs 2,300 a ton for 9.5 per cent recovery for the crushing season for 2015-16 starting from October 1.

Against this backdrop, key representatives of the cooperative sugar factories are expected to make a fresh appeal to Fadnavis for immediate help during their meeting slated for Wednesday. An offical of the Federation of Cooperative Sugar Factories in Maharashtra told Business Standard : “The steps taken so far by the Centre and the state government are not sufficient for cooperative sugar factories to stay afloat.”

The official added a large number of cooperative sugar factories indicated that they won’t be in a position to participate in the coming crushing season due to financial crunch. Furthermore, they won’t be entitled to get loan from the Maharashtra State Cooperative Bank and district central cooperative banks due to negative net worth.

Meanwhile, former union agriculture minister Sharad Pawar today closetted with members of the cooperative sugar industry at Pune and reviewed the present situation. Pawar, who recently led a delegation of sugar industry to meet Prime Minister Narendra Modi, has assured to further take up issues faced by the sugar industry at the level of Centre and the state government.