Chavan for more transparency in sugar co-ops

CM calls for professionalism and a scientific approach in mills’ operations.

Two days after the Bombay High Court’s decision to look at fund utilisation by cooperative sugar factories, Maharashtra Chief Minister Prithviraj Chavan on Friday called for transparency and professionalism in the latter’s operations. He said the mills would have to improve their performance to take on challenges in the fast-changing market.

At the same time, Union Agriculture Minister Sharad Pawar said the mills should crush the standing cane in the current season but be prepared for crushing bumper cane in the 2011-12 season. He hinted at various innovative solutions to the issues faced by the sugar industry.

Chavan and Pawar were speaking near Pune at the annual general meeting of the Federation of Cooperative Sugar Factories in Maharashtra, a representative body of a little over 170 mills in the state.

Chavan said the industry should not expect more financial help from the state government as it had already announced a Rs 1,000-crore package to help farmers, including cane growers, affected by unseasonal rain.

His statement comes after the court’s observation that more than half the co-operative sugar factories in the state were financially sick. The court said there was a need to revive or close the sick mills. It sought the Comptroller & Auditor General of India’s audit reports for these mills from April 2007 within six weeks.

This comes at a time when various political parties and farmer organisations, such as the Shiv Sena and the Maharashtra Navnirman Sena, have been leading agitations to press for payment of Rs 2,200 per tonne as the first advance to cane growers. A senior state government official told Business Standard: “Immediately after addressing the federation’s AGM, Chavan held a two-and-a-half hour meeting with Cooperation Minister Harshvardhan Patil to closely look into the mismatch between revenues and expenses of sugar mills and the challenges faced by them.”

He said Chavan had asked the cooperation department and the federation to provide details of the revenue earned by the mills and their capacity to pay the cane price.

Deputy Chief Minister Ajit Pawar criticised the agitators for excessive demands and said they were led by those who could not win any election.

PTI adds: The Centre will issue its directive on export of 500,000 tonnes of excess sugar production this week, Union Agriculture Minister Sharad Pawar said on Friday.

“The government took the decision permitting export of 500,000 tonnes of sugar yesterday and a notification to that effect will be issued this week,” he said.