Sugar subsidy to rise on increased output

The state government's sugar subsidy bills are set to rise this year as it would have to compensate for the expected rise in sugar production.

The state had given subsidy worth Rs 457 crore to the sugar industry in the last financial year. It had paid a compensation of Rs 132 crore to the farmers for unbrushed sugar and around Rs 75 crore to the sugar factories towards the under-recoveries.

Moreover, the government paid a transport subsidy of Rs 30 crore to encourage the sugar cooperatives to buy sugarcane from the farmers. The state also extended an export subsidy of Rs 1,000 a tonne to the sugar cooperatives, totalling Rs 220 crore.

The state saw bumper sugarcane production amounting to 790 lakh tonnes last year. The crushing season was extended till the end of May as against the normal season that ranges from October to March or the 1st week of April. Yet nearly 33 lakh tonnes remained uncrushed.

The sugarcane production has touched nearly 840 lakh tonnes this year. With most sugar cooperatives starting their season nearly six weeks behind the schedule due to the extended monsoon, the uncrushed sugarcane will be higher this year, said Maharashtra State Sugar Cooperatives Federation (MSSCFL) managing director Prakash Naiknavare.

Even though the number of sugar factories has increased, the quantum of crushed sugarcane has come down by 25 lakh tonnes. Nearly 670 lakh tonne sugarcane was crushed till April 10 last year, he pointed out.