Loss by Maharashtra coop sugar mills factories to fall Rs 960 cr

Govt on Thusday partially deregulated the levy mechanism on sugar

Maharashtra cooperative sugar mills have received a partial benefit due to partial decontrol. The loss on account of mismatch between the market price and the price at which levy sugar was sold will fall by Rs 960 crore during the current crushing season. Factories will earn at least Rs 115 to 120 per quintal following the relaxation of 10% levy obligation.
 
In all 170 sugar factories comprising 108 cooperative and 62 private mills are participating in the present season and are expected to produce 8 million ton of sugar.
 
Vijaysinh Mohite-Patil, chairman, Federation of Cooperative Sugar Factories in Maharashtra, a representative body of over 170 units, told Business Standard "Against ex-mill price of Rs 2,800 to 2,900 per quintal, factories had to sell 10% levy sugar at the government determined price of Rs 1,850 per quintal. The loss incurred by them was Rs 1,100 to Rs 1,200 per quintal. But with the removal of 10% levy obligation, the loss will now come down by Rs 960 crore from the total estimated loss of Rs 3,300 crore," he informed.

 

Mohite-Patil said factories will now able to use Rs 960 crore earned by them to pay cane growers. "Definitely, cash flow of factories will increase as they will be able to take a call on sale of sugar as per the market conditions," he noted.
 
Moreover, Mohite-Patil called upon the Centre to keep consistency in the decontrol regime despite surge in sugar price.