Mumbai, November 28

Maharashtra's politicians who control most of the state's sugar co-operatives want the Central Government to allow export of the sweetener in addition to a subsidy of Rs 500 per quintal.

A delegation of state politicians from both the ruling and opposition parties met Prime Minister Manmohan Singh earlier this week and sought his intervention, according to sources here.

"Maharashtra has surplus sugar amounting to 24 million tonnes and more cane will be crushed this year," says an official of the state sugar federation. According to the trade, there is a surplus of 94 million tonnes of sugar across India.

However, sugar output in the country is likely to be lower this year as sugar mills in Uttar Pradesh, India's largest sugar producer, have suspended operations in order to obtain higher prices from the state government. Sugar mills in Maharashtra have already begun crushing cane. As of now, sugar mills have agreed to pay just Rs 2,400 per tonne of sugar cane. Farmers' organisations are demanding that they be paid at least Rs 3,000 per tonne.

Political leaders in charge of sugar co-operatives are already demanding that the Central Government make it mandatory for oil companies to increase the blend of ethanol in petrol from 5 to 10%.

Other concessions being demanded include restructuring of loans and interest-free loans to sugar mills.

Meanwhile, sugarcane farmers in Maharashtra have threatened to stop crushing of cane if the minimum support for cane is not raised to Rs 3,000 per tonne.