Sugar industry representatives meet PM

With arrears to canegrowers touching a record high at Rs 21,000 crore, the sugar industry today made a strong plea to government for buyout of 10 per cent of its production for creating a buffer stock to solve the crisis the sector was facing.
A delegation led by former Agriculture Minister Sharad Pawar, comprising of MPs and representatives of cooperative sugar industry and Indian Sugar Mills Association (ISMA) met Prime Minister Narendra Modi to press for the demand.
"The buy out of 10 per cent of sugar production is the best...And the quickest way to reduce the cane price arrears of our farmers," the delegation said in a memorandum to the Prime Minister.

The delegation also sought financial restructuring of loans to the sugar mills noting that the current situation was unprecedented in the wake of surplus sugar production continuously in last five years and an expected 100 lakh tonnes
of carry forward stocks at the end of the current season.
"He had realised the situation was serious. He was anxious to resolve the issue", Pawar said after the meeting at which MPs Prabhakar Kore (BJP), Supriya Sule (NCP), Vijaysinh Mohite Patil, MP and Chairman of Maharashtra State Cooperative Sugar Factories Ltd (MSCSFL), Kallappa Awade, President of the National Federation of Cooperative Sugar Factories Ltd and Abinash Sharma, Director General, ISMA.

The MSCSFL sought support of the Centre to sugar mills by way of Rs 850 per tonne to meet out the gap for paying fair and remunerative price to the canegrower. It is to be noted that this year the cost of production is around Rs 32-34 per kg while the sale price of sugar is just around Rs 23.

It wanted the Centre to create a buffer stock of 50 lakh tonnes at mill level for two years.
Pawar suggested that government give loan to an agency like FCI which can buy the sugar from the mills and the interest burden could be borne by Sugar Development Fund.

Noting that "nothing has been done to solve the current crisis of surplus sugar and depressed domestic sugar prices", the delegation also wanted the Prime Minister to call the industry for a detailed meeting to decide long term issues facing it.