| Date: |
30-01-2015 |
| Subject: |
Subsidy likely to rise but industry unhappy |
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KOLHAPUR: The Union government is likely to increase the export subsidy on raw sugar from Rs 330 per quintal in 2013-14 to Rs 400 per quintal in 2014-15. But, the industry does not seem to be impressed with it as the government is yet to pay subsidy dues of Rs 130 crore from 2013-14 fiscal.
Sanjeev Babar, MD, Maharashtra State Federation of Cooperative Sugar Factories Ltd, told TOI, "In 2013-14, around 50 sugar factories from the state had exported 7.3 lakh tonne raw sugar after the export subsidy was announced. However, subsidy to the tune of Rs 130 crore was not paid till date and the factories were warned of legal action if they fail to make payments to farmers for sugarcane purchase... Last year, the notification on subsidy was issued on February 28.
Vijaysinh Mohite Patil, chairman of the federation said, "The Union government is in the process of revising the export subsidy on raw sugar from Rs 330 per quintal in 2013-14 to Rs 400 per quintal. But, the cabinet has not yet taken a decision and unless the decision is made, we (the sugar factory management) will not switch over from white sugar production to raw sugar production. The longer delay means more losses to the factories."
MP Dhananjay Mahadik, chairman of Bhima Cooperative Sugar Factory at Mohol in Solapur said, "The government's decision will certainly help the factories, but it has to be taken soon. The factories can switch over to raw sugar production within two day's period but the produce has to be shipped immediately because it has a short shelf life. For that, the government's notification is needed."
Once a factory starts production of raw sugar, its production cost comes down by Rs 200 per quintal. With the Rs 400 per quintal subsidy, the factory can secure profit and pass it on to the sugarcane growers in the form of purchase price, Mahadik added.
Source : timesofindia.indiatimes.com
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