Sugarcane growers to get special package

The Orissa government is mulling a special package for the sugarcane growers to encourage cultivation of the crop in the state,

The officials of the agriculture department have been asked to prepare the special package, said state agriculture and co-operation minister, Damodar Rout.

Talking to the media on the sidelines of receiving a bank draft of Rs 3.13 crore from the chairman of the Nayagarh Sugar Complext (NSC), Trailokya Mishra towards the pre-payment of the dues of the company, the minister said, efforts will be made to provide credit inputs to the sugarcane growers.

The farmers in the state are provided crop loan at 5 percent interest and this benefit will be expanded to the sugarcane growers. Since the sugar industries in Orissa are facing shortage of sugarcane, they are unable to utilise the total capacity.

The special package contemplated for the sugarcane growers would help in augmenting the supply of sugarcane.

It may be noted, Orissa Federation of Sugar Industries (OFSI) has been demanding for formulation of a comprehensive sugar policy in line with the policy in force in other states, providing for incentives for distilleries and a stringent excise policy for making the sugar mills viable.

Setting up sugar complex along with easy and timely availability of credit to the sugarcane cultivators were suggested to make the sugar mills in Orissa viable in the long run.

Out of 6 sugar mills in the state, three belong to the co-operative sector and the remaining to the private sector. These mills are Aska Co-operative Sugar Mills, Baragarh Co-operative Sugar Mills, Nayagarh Sugar Complex, Balaji Sugar and Allied Industries, Shakti Sugars Limited , Bijayananda Co-operative sugar Mills. Due to non-availability of adequate quantity of sugarcane, the average capacity utilisation is about 27 percent.

Speaking on the occasion, chairman of the Nayagarh Sugar Complext (NSC), Trailokya Mishra said, as per the sale and purchase agreement signed with the state government in 2004, NSC was supposed to pay the outstanding over a period of 13 years.

After a moratorium of 2 years, the company has paid two installments and all the outstanding are being cleared to have a clean balance sheet.

NSC is on the growth trajectory and has drawn up plans to modernise and upgrade the sugar unit. The focus will be on value addition, he added.