The Maharashtra State Cooperative Sugar Factories’ Federation wants the Centre to increase the import duty of sugar to 60% to discourage imports.
The current import duty is 15%. Expressing fears that Indian sugar may not survive a highly competitive international market, MSCSFF urged the central government to provide them a financial assistance of Rs 800 per quintal. Federation officials said this will help them overcome the current situation.
According to officials, around 17 lakh metric tonnes of sugar was imported in the past one year. Market sources saiud that 4-5 private players, who have their own refineries, preferred to import raw sugar from Brazil since it was cheaper than the raw sugar made in India. In India, raw sugar is made as per demand, observers said.
Vijaysingh Mohite Patil, chairman of the federation, also urged the central government to create a buffer stock of 50 lakh tonnes of sugar. Patil said the central government had created a buffer stock in a similar situation earlier and the step had proven to be beneficial.
Patil said the country’s surplus sugar could also be exported to earn money to provide farmers with some income if the government offered subsidy component to the sugar factories.
He said Maharashtra’s sugar industry pays substantial taxes to both the central and the state governments and therefore it is incumbent on them to intervene when the sugar sector is experiencing a serious financial crisis. His organisation has called on chief minister Prithviraj Chavan to leverage his influence with the central government. in this connection.
Meanwhile, around 21 sugar mills in Maharashtra have begun crushing operations. However, not a single mill in Satara, Sangli and Kolhapur has started crushing since farmers in these regions are protesting over a higher first cane installment. Around one lakh sugarcane growers are expected to gather Jaisingpur in Kolhapur district to decide on the first installment.
The meet has been convened by Kolhapur MP Raju Shetty's Swabhimani Shetkari Sanghatana.
The Sharad Joshi-led Shetkari Sanghatana that has already demanded a first cane price of Rs 3,200 per quintal is also holding a three-day meet at Chandrapur in Maharashtra to press for their demands. The Raghunathdada-led Shetkari Sanghatana, which has demanded a first cane price of Rs 3,500 per unit, has maintained that the organization would curb the movement of trucks carrying cane and milk across the state. Vithal Pawar, general-secretary, Sharad Joshi led-Shetkari Sanghatana said that factories should first pay up arrears of Rs 140 crore , which is the final payment on cane for the previous season before the start of the new season. “We will not interfere with the production process but will not allow the sale of sugar and other by-products in the market,” he threatened.