Centre to clear subsidy claims of sugar mills

To ensure that the large sugar stocks do not lead to cane price arrears, the Centre has decided to expedite buffer stock claims. This year's budget allocation for the same is Rs 350 crore. The directorate of sugar has already started the process in Maharashtra, north Karnataka and Andhra Pradesh. It will organise camps in Chennai next week, he said here on Thursday.

 

Bhagria said sugar production in the country stood at 28.3 million tonne last year and estimates from various sugar and cane commissioners across the country put this at 27 million tonne for the current year on account of cane price arrears issues. Domestic sugar consumption was 20 million tonne last year while it is expected to be 21 million tonne this year.

"Around 370 of the 500-odd sugar factories across the country, both cooperative and private, maintained a total 5 million buffer stock, for which we have to settle claims including  insurance and holding costs. Of the total buffer stock, claims for which will be to the tune of Rs 780 crore, 2 million tonne has already been released. The remaining stocks will be cleared by this month end," he said.  Last year, Rs 176 crore buffer stock claims were cleared.

To liquidate stocks, Bhagria said, the directorate was adopting a two-pronged plan that includes an export assistance of Rs 1,350 per tonne for coastal states and Rs 1,450 crore for non-coastal states.