Sugar industry demands roll back of stock limit on mills

Sugar industry today asked the government to remove stock holding limits imposed on mills, saying the decision would hit the producers adversely as prices of the sweetener have fallen across the country.
An industry delegation led by former Agriculture Minister Sharad Pawar met Finance Minister Arun Jaitley tonight and sought long-term measures to revive the sector.
The delegation also sought the Union Minister's urgent intervention to direct the Reserve Bank to restructure bank loans to sugar mills.
To check spiralling price of sugar, the government last week imposed stock limits on sugar mills during the festival season till October-end.
Stock holding limits are already in place on sugar dealers/traders. Sugar prices have started inching up as domestic production has fallen to 25.1 million tonnes in the current 2015-16 marketing year, against 28.3 mt in the last year.

"The imposition of stock holding limits on producers wil adversely affect the sugar mills. Due to this decision, the ex-mill sugar prices have come down to Rs 150-200 across the country," the industry said in a memorandum submitted to the government.

"We want a long-term policy for the sector as it has been hit hard by far too many fluctuations," National Federation of Cooperative Sugar Factories Ltd (NFCSF) President Dilip Walse Patil, who was part of the delegation, said.
The delegation also comprised Maharashtra Rajya Sahakari Sakhar Karkhana Sangh Ltd chairman Shivajirao Nagwade, its vice chairman Jaiprakash Salunkhe Dandegaonkar and ex-Maharashtra Minister Harshwardhan Patil.

It also pleaded the Minister to withdraw cess on sugar at Rs 100 per quintal "at the earliest" and waiver of excise duty on ethanol to be supplied to oil marketing companies (OMCs) in various depots under ethanol blended petrol programme.
The preferential rate fixed for ethanol to be supplied to OMCs should continue for another five years, they demanded.
The industry also demanded restructuring of outstanding loans of cooperative sugar mills and revival of the committee of rehabilitation.