Co-op sugar movement losing steam: Minister

The cooperative sugar units started by Vidarbha politicians in late eighties and nineties are going through a difficult time.

At present, only one out of the 16 cooperative sugar factories is working and four are closing soon. The cooperative movement has cost almost Rs 966.79 to the government and financial institutions.

This was revealed by the Maharashtra cooperation minister Patangrao Kadam on Thursday. Vidarbha is not a sugarcane producing region and the procurement areas mentioned in cooperative units' project reports are either barren or commercial/residential localities.

Kadam said lack of cooperative movement, low sugar output in the region, faulty management practices and messy finances are responsible for the plight of sugar factories. Excluding Vasant Pusad in Yavatmal district, other 15 co-operative sugar mills can not be revived in the current crushing season, Kadam said. Most of these mills have a negative net worth.

Together these mills owe Rs 157.73 crore to the state government and Rs 809 crore to the Maharashtra State Cooperative bank. These sugar factories were given Rs 2 crore each under the sugarcane development scheme.

Kadam said he would try for inclusion of these sugar factories under recently announced Nabard package. He also said that not even a single factory from these qualifies for financial assistance under the existing norm.

The state government is expected to take a final decision on November 29, he said.