Defaulters push sugar inst into hard times

Vasantdada Sugar Institute (VSI), a premier research establishment in the field of sugarcane produce and sugar factory issues, is fighting for survival, thanks to the Rs 36-crore outstanding from the Maharashtra government and various co-operative sugar factories in the state.

While VSI office bearers are experiencing immense pressures to recover these dues from sugar factories that are led by political bigwigs, ongoing research projects and other administrative issues are being driven with the help of funds meant for development works and interest drawn on amount saved from administrative expenditure.

 Of the Rs 36 crore dues, the state government is supposed to pay Rs 10.29 crore while the co-operative sugar factories are expected to deposit dues worth Rs 26 crore.

Through a state government provision, every cooperative sugar factory is bound to pay Re 1 per tonne of sugar production to VSI.

In addition, the state government is supposed to fund VSI through the sugarcane purchase tax being paid by co-operative sugar factories. However, the institute has failed to draw this funding from a large number of sugar factories and the government since 1995.

While a few sugar factories have helped VSI on a regular basis, others have been regular defaulters for more than 14 years for now. The state government in  2006-07 waived the sugarcane purchase tax to help the co-operative factories. With this, the funding for VSI through this mean became impossible.

On a yearly basis, VSI spends around Rs 14 crore towards ongoing research projects and expansion work. It earns Rs 3 crore through sale of seedlings, seeds and fertilisers on a 'no-profit-no loss' basis.