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The ongoing sugar crisis reached Delhi, with a group of farmers, under the banner of All India Sugarcane Growers Association and All India Sugar Manufacturers Association, holding a demonstration at Jantar Mantar demanding payment of cane dues.
"The only way out from the current crisis seems to be fixing a floor price for sugar akin to the minimum support price (MSP). No factory would sell sugar below that level. A cess should be imposed. Funds collected could be used to subsidise exports," said O P Dhanuka, chairman and managing director, Riga Sugar Company Ltd. Dhanuka said the Centre should also advise banks to restructure the accounts of sugar firms by converting at least 50 per cent of the working capital loan to working capital term-loan for seven years at reasonable interest with a two-year moratorium.
Sugarcane arrears accruing to farmers were estimated to be Rs 21,000 crore as on March 31, up from Rs 17,000 crore during the corresponding period last year. Sugarcane production is estimated to be marginally lower in this financial year.
