Task Force to study suggestions on sugar industry growth

The Task Force on sugar, set up by the Orissa government, will examine various suggestions made by the Orissa Federation of Sugar Industries (OFSI) for promotion of sugar industries in the state.

The suggestions include availability of proper quality seed, activating the defunct minor and medium irrigation projects, infrastructural and credit linkage at the district level and control of diversion of sugarcane for jaggery through license.

“We have suggested for extending all support required to improve the yield for farmers and help in recovery of the industry”, Trailokya Misra, vice-chairman, Orissa Federation of Sugar Industries (OFSI) told Business Standard.

The problems of the sector, starting from cultivation of cane to production of sugar, were thoroughly discussed in the first meeting of the Task Force. Since the rate of crushing is low in Orissa compared to other states mainly due to lack of raw material, various ways to increase the sugarcane production through forward and backward linkages were also discussed.

Sources said, the Task Force will examine these suggestions and will make suitable recommendation to the state government.

“The Federation has asked for some support and incentives from the government. We will make the appropriate recommendation after examining the suggestions”, Suresh Chandra Patnaik, convener of the Task Force on sugar industries told Business Standard.

He said, since sugarcane cultivation for this season has already taken off, there will be limited scope for government intervention. However, an action plan will be prepared for enhancing the area under sugarcane in the next year.

It was decided that steps will be taken for ensuring availability of water, creating awareness, credit linkage, supply of qualitative seeds and district level credit linkage for the sugarcane farmers.

Sources said, OFSI stated that if the required support and incentives can be provided to the sugar industries in the state, Orissa can be converted into a sugar hub. While generating revenue of about Rs 500 crore every year, the sector will be able to generate huge employment.

The government support will enable the sector to help in promoting ancillary units, bio-fertiliser and green power. Though there are six sugar mills in the state, the capacity utilisation in the last season was only 22 percent with the cane crushing being 3,24,000 tonnes as against the requirement of 14,52,000 tonne.

Orissa, according to official estimates, requires about 6,50,000 tonne of sugar every year with only 29,000 tonne being produced locally. In this context, to meet the sugar deficit in the state, additional cane production of 62.1 lakh tonne is required which necessitates additional cane area of 1.1 lakh hectares. On the other hand, the state is loosing about Rs 391 crore due to diversion of 3,58,000 tonne of cane for other purposes like manufacturing of jaggery and illicit liquor.