Sugar production in Maharashtra is expected to take a big hit due to a 40 per cent drop in the availability of sugarcane during the 2012-13 crushing season.
State cooperation minister Harshvardhan Patil said, "According to our estimates, sugarcane availability for the ensuing crushing season will be 54.5 million tonne (mt) against 77.1 mt in 2011-12, while output would fall to 6.3 mt compared to last year's 8.9 mt. This would impact the industry's turnover as it would be down to Rs 25,000 crore against last year's Rs 40,000 crore."
He said the industry's tax payment to the state and the central government would decline. "Against a total tax payment of Rs 4,600 crore in 2011-12, this year it is estimated to be Rs 2,500 crore, a fall ofRs 2,100 crore. These taxes include sugar cess, sugarcane purchase tax, excise and contribution towards the chief minister's fund," he said.
Of the Rs 40,000 crore turnover, Rs 25,000 crore were towards sugarcane payment to farmers, Rs 5,000 crore towards molasses production,Rs 5,000 crore towards co-generation and Rs 5,000 crore towards ethanol and bagasse production. "However, nearly 40 per cent dip in the availability of sugarcane, largely due to inadequate rainfall, especially in the growing areas, would change the state's sugar economy and ultimately the industry would be affected," he said.
According to Patil, the state's opening quota is estimated to be 2.25 mt and sugar output is projected at 6.3 mt. So, by the end of the coming crushing season, the total availability of sugar for the state would be 8.55 mt.
Due to inadequate sugarcane availability, Patil said the participation of sugar factories in the 2012-13 season would also fall. "During 2011-12, 161 factories, including 120 cooperative and 41 private, crushed cane. According to the current estimates, 95 cooperative factories are expected to participate in the ensuing crushing season along with 50 private factories. The process would begin from November 1, instead of October 1," he said.
He said the central government should remove the 10 per cent import duty on raw sugar imports, especially when factories are keen on refining here.
