Maharashtra tells sugar barons not to expect any subsidy

The state government has denied financial assistance to sugar industries, advised sugar barons to continue running their mills as a normal business, raise funds from open market and not expect any subsidies, state cooperatives minister Chandrakant Patil said here today.
He was speaking to reporters here after meeting a delegation of sugar mill owners, who demanded an interest free loan of Rs 2,000 crore to the sugar industry.
Incidentally, the statement came after Maharashtra Cooperative Sugar Mill Owners' Federation Chairman Vijaysingh Mohite Patil met Chandrakant Patil today.
Former Maharashtra Deputy Chief Minister Ajit Pawar along with Jayant Patil and Dilip Walse-Patil were other members of the delegation who met Chandrakant Patil.

Mohite Patil said that they have demanded an interest free loan of Rs 2,000 crore to sugar mills to ensure that mills can pay the difference of Fair and Remunerable Price (FRP) to sugar producing farmers.
"The Maharashtra state government has assured the assembly of relief to the sugar industry and will make available an interest free loan of Rs 2,000 crore," Mohite Patil said.

He added that, since the balance sheets of sugar mills are in the negative and the price of sugar in the market has drastically decreased, several sugar mills are not able to pay FRP to farmers.

"We have also demanded a subsidy of Rs 850 per tonne of sugarcane from the state government, to meet the FRP requirement," Mohite Patil said.
However, the minister for cooperatives rejected the delegation's demand of a subsidy to the sugar industry.