News Analysis India

Tag: Sugar Mills

  • Amit Shah assures help for Maharashtra sugar mills

    By Express News Service

    NEW DELHI/MUMBAI:  Union Home and Co-operation Minister Amit Shah on Tuesday held a meeting with leaders from Maharashtra on issues pertaining to the sugar industry and ensured all possible help from the Central government to revive the industry in the state. Co-operative-based sugar factory issues were discussed. Officials said Shah assured the delegation that steps would be taken. 

    Union Minister of State for Coal, Raosaheb Patil Danve, Minister of State in the Ministry of Cooperation BL Verma, former Maharashtra CM Devendra Fadnavis, former Maharashtra ministers Radhakrishna Vikhe Patil, Madan Bhosle and Harshvardhan Patil, along with MLA Rahul Kul, MLC Ranjit Singh Mohite Patil and former MP Dhananjay Mahadik  attended the meeting. The meeting is significant in terms of the government’s concern towards sugar mills.

    The Cabinet Committee on Economic Affairs had in August approved fair and remunerative price (FRP) of sugarcane payable by mills for the 2021-22 season. Maharashtra co-operative sugar factories demanded the financial package and relief in income tax, according to officials. Sugar factories in Maharashtra have to pay Rs 10,000 crore as income tax. The factories are facing difficulties in paying taxes due to drought, Covid and rain.

    Fadnavis said a number of decisions were taken in the meeting. He said the main demand was for a permanent solution to the tax issues of factories that are paying more than FRP to farmers. “Most of these are old problems. However, Amitbhai Shah ensured solutions to these problems. The government wants to resolve the issues through a tripartite agreement with oil companies regarding the ethanol projects. We also discussed the debt restructuring of sugar factories that will help them to come out from the crisis,” Fadnavis said.

  • Nitin Gadkari hits out at sugar barons of Maharashtra; asks farmers to change crop pattern

    Express News Service

    Union Minister Nitin Gadkari on Saturday said sugar mills were producing an excess of 70 lakh tonne sugar, way higher than the demand, and hence asked the state governments not to give permission for establishing new mills.

    Attacking the sugar barons of Maharashtra, Gadkari said “India needs 240 lakh tonnes of sugar while the production is 310 lakh tonnes”.

    “It means that we produce 70 lakh tonne of extra sugar. Government should not give any permission to any new mills. Otherwise, the situation will get worse. If no one takes sugar, that will worsen the situation of the farmers,” the union minister said.

    He also warned that if the economic cycle reversed, farmers would not be able to afford it, banks would collapse and factories would close.

    “The price of sugar in Brazil was Rs 22 per kg two months ago. We had set a minimum price of Rs 31 per kg of sugar. I am also on that committee. We wanted to increase the price of sugar by Rs 2 but did not increase it. Because everyone thought sugar would be expensive. But today, sugar production in Brazil is low. There is famine there. So in two to three months, there was a slight rise in sugar. Therefore, it is necessary to export as much sugar as possible,” he said adding the farmers should also transform their crops pattern.

    Gadkari also said that they have to reduce the formula from sugarcane to sugar and need to go for ethanol.

    “Sugar factories should start the ethanol pump at their factory and wherever it is possible. I will ensure the permission of ethanol pumps and even give the agencies of vehicles that run on ethanol. Ethanol fuel is not only cheaper but also reduces pollutions. In Brazil, the planes also run on ethanol fuel. We have to change our old habits of using petrol and diesel that cost the heavy price to government and customers also,” Gadkari.

    Gadkari was in Ahmednagar inaugurating development works.