Maharashtra government today said the sugarcane crushing season will commence from October 15 this year and the sugar production is likely to decline to 86 lakh tonnes in 2015-16.
Last year, sugarcane crushing took place in 178 sugar factories and the crop was grown on 10.5 lakh hectares area, while 930 lakh tonnes were crushed producing 105 lakh tonnes of sugar.
"In 2015-16, sugarcane was sown in estimated 129.86 lakh hectares, while 760 lakh tonne is expected to be crushed producing 86 lakh tonnes sugar," Principal Secretary (Co-operation) S K Sharma said.
The decision was taken at the cabinet sub committee meeting chaired by Chief Minister Devendra Fadnavis to discuss the sugarcane crushing policy for 2015-16.
Sharma said 87 per cent of the 178 sugar factories have paid the fair and remunerative price (FRP) to farmers.
The cabinet sub committee has decided that the remaining 13 per cent of the factories will be given permission for cane crushing for the new season after they furnish a gaurantee that payment of FRP arrears will be done in a month's time.
Similarly, the cabinet sub committee will take a decision regarding terms and conditions for standing guarantor to sugar factories, which are in negative net worth and factories, which are functional but did not take part in the crushing season last year.
Agriculture Minister Eknath Khadse, who attended the meeting, said there are 47 factories into ethanol production.
"Ten per cent ethanol blending has been made compulsory by the Centre. Maharashtra's quota is to produce 53 crore litre and the state is getting rs 48 per litre. 12.5 per cent excise has also been waived off," he said.
