 "Food min assures sugar mills of government support")
As the crisis in India’s sugar mainly in UP and Maharashtra, showed little signs of abating, food minister K.V. Thomas today assured the millers that government will do whatever possible within its means to help them.
He also said that Chairman of Prime Minister’s Economic Advisory Council (PMEAC) C Rangarajan, who had chaired a committee on reforming the sugar sector, has assured that he will look into his recommendation of revenue-sharing formula for sugar pricing.
States like Uttar Pradesh have objected to the revenue-sharing formula on the grounds that it will take away their sovereign right to determine just sugarcane price for farmers.
“All suggestions made by the sugar millers including interest-free loans, creation of buffer stock is being seriously considered by the government and a high-powered committee under the chairmanship of agriculture minister Sharad Pawar is looking into this and will take a decision in the next few days,” Thomas said.
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The decision to raise the mandatory ethanol blending programme with petrol to 10 per cent from the current 5 per cent is being handled by the petroleum ministry. “A final decision is expected as soon as Pawar returns from his tour,” Thomas said.
“The state governments have to play a proactive role in this and I’am appealing to both the millers and farmers that instead of agitating, crushing operations should be started immediately,” he said.
He also denied that presently, there does not seem to be any impact on India’s sugar production in 2013-14, but nothing can be said if the logjam continues.
Around 122-odd private sugar mills in Uttar Pradesh and some mills in Maharashtra have not started their annual sugarcane crushing because of high cane price demanded by farmers.
Millers alleged that because of sharp drop in sugar prices and rising inventories they are saddled with cane arrears of around Rs 3,200 crore accruing to farmers.
More than 70 of 99 private mills in UP including the big ones like Bajaj Hindustan have suspended their operations in view of rising arrears.
The Centre, meanwhile, officials said has readied a package which will allow mills to access loans from banks, while the interest cost on it will be borne by the Centre. “The matter is being referred to CCEA after proper discussion in the informal group of ministers headed by Sharad Pawar,” a top food ministry official said.
Thomas said sugar production in 2013-14 is expected to be lower at 244 million tonnes, almost 3 per cent less than last year mainly because of drought in Maharashtra, India’s biggest sugar producing state.
Earlier, in the day, the food minister met Prime Minister Manmohan Singh, finance minister P Chidambaram and Chairman of PM’s Economic Advisory Council, C Rangarajan to discuss the sugar crisis.