Waiver of purchase tax on sugarcane for the coming season would provide relief to sugar cooperatives across Maharashtra, said Chief Minister Devendra Fadnavis Wednesday. The decision comes in the wake of the sugar sector seeking government’s financial help, following drought causing major damage to cane across Marathwada and parts of west Maharashtra.

Fadnavis said, “It is important to address concerns of all sectors to maintain socio-economic balance. Sugar factories are part of our system and we cannot ignore their concerns. At the same time, we have to ensure balance to see farmers who are cane growers are not left out and get dues they deserve from sugar mills.” He said, “To provide relief to sugar mills, the government will exempt purchase tax on sugar cane for sugar cooperatives. That would provide a big relief to the sugar industry.”

However, advocating concerns of cane cultivators awaiting dues from sugar mills, he said, “The sugar mills should give fair remuneration to farmers. There cannot be any ambiguity about FRP.”

FRB for sugar this year is Rs 2,200 per tonne. The centre fixes FRP, mandatory for all sugar mills while making payments to farmers for sugarcane purchased for sugar mills. In Maharashtra, almost 80 per cent sugar mills have not been able to pay FRP citing losses due to drought. The centre had given Rs 2,000 crore package to sugar mills. But most of them are seeking more financial aid.

Fadnavis’ decision to waive purchase tax will bring relief to the sugar sector. Earlier, the chief minister indicated that they will have to bring the entire sugar cultivation under drip irrigation, under “a crop per drop” scheme. Sugar mills and the water intensive cane crop are being partly blamed for the water scarcity in drought prone districts.

In some parts of Marathwada and western Maharashtra, the government has encouraged the “beyond sugarcane campaign” to encourage farmers to explore crops in place of sugarcane to meet challenges of recurring droughts.