Andhra govt to set up panel to study woes of sugar industry

Andhra Pradesh Chief Minister N Chandrababu Naidu today said that an expert committee, comprising experts from agriculture and other sectors, would be constituted to study the woes of the workers and management of sugarcane factories in the state.
At a review meeting with the managing directors of sugar factories held at CM camp office here, Naidu said the panel will have experts from financial, technical, agriculture and management sectors and it would submit a report on the issue within 45 days.
Proposing to bring the co-operative sugar factories under professional management, Naidu directed the officials to modernise machinery, increase production capacity, digitise all records, employ qualified personnel and retain skilled professionals.

He suggested that in the rain-fed areas, drip irrigation be used to improve output.
Managing directors of the sugar factories informed the Chief Minister that out of the total 29 sugar factories in the state, only 24 are operational (17 private, seven cooperative). Of the five non-functioning factories, two are private and three are in the cooperative sector.
According to an official statement, the total crushing capacity of the state is 91,200 metric tonnes and currently, the area under sugarcane cultivation is 1.09 lakh hectares.

Managements of some sugar factories asked whether the government power purchase price could be increased from the Rs 2.84 per unit given that A-Grade sugar factories, like the Chodavaram Cooperative Sugars and Etikoppaka Cooperative Sugars, generate and sell power.

Naidu asked the officials to study the viability of Tamil Nadu government model where sugar is included as a commodity under the public distribution system (PDS).
The executives from sugar factories also requested the Chief Minister to levy an import fee on rectified spirit to gain income when it is being transported to other states.
Principal Secretary (investments and industry) J S V Prasad was also present for the meeting.