Sugar industry seeks govt help after surplus produce

Sugar industry has sought financial help and other assistance from the government following surplus sugar availability, Lok Sabha was informed today.
Food Minister Ram Vilas Paswan said during Question Hour that representations from Association of Sugar Industry have been received by the government seeking assistance primarily in the form of a hike up to 40 per cent in duty on import of sugar and continuance of export incentive scheme for raw sugar exports for the sugar season 2014-15.
Creation of strategic sugar stocks, mandatory ethanol blending at 10 per cent and increase in ethanol procurement price, diversion of excess sugar to produce ethanol through B-molasses and participation of state governments in cane price payment over and above fair and remunerative price of sugarcane are some of the other demands, he said.

Paswan said import duty on sugar has already been increased from 15 per cent to 25 per cent with effect from August 20 and it has not been found feasible to create strategic sugar stocks.
He said oil marketing companies can sell ethanol-blended petrol with percentage of ethanol up to 10 per cent to achieve 5 per cent ethanol blending across the country as a whole.
Procurement price of ethanol is decided between oil marketing companies and suppliers of ethanol, he said.
Paswan said request for payment of the differential between state advised price and fair and remunerative price relates to the respective state governments.

Continuance of export incentive scheme for sugar season 2014-15 is under examination, he said.