The Union agriculture minister made it clear that sugar factories will have to take a decision on the pricing of sugarcane.
Union agriculture minister Sharad Pawar on Monday made it clear that the state government will not play a role in deciding the price of sugarcane and the sugar factories will have to take a decision on the pricing of sugarcane. Pawar also said that if the factories quote a higher price than their capacity to pay and incur a loss, the state government will not take the responsibility for the recovery of that loss.
Pawar made this statement against the backdrop of recent agitation by leader of Swabhimani Shetkari Sanghatana and Member of Parliament Raju Shetty in Pawar’s own backyard Baramati for higher price for sugarcane.
Pawar was speaking at the 55th annual general meeting of Maharashtra State Cooperative Sugar Factories Federation at the Vasantdada Sugar Institute in Manjari on Monday. Chief minister Prithviraj Chavan, deputy chief minister Ajit Pawar, speaker of state assembly Dilip Walse-Patil, president of federation Vijaysinh Mohite Patil and state ministers Harshawardhan Patil, Jayant Patil and Baban Pachpute were present.
Addressing the members, Pawar said, “The administrators and members of sugar factories have practical knowledge of sugar production, cost and market conditions. Then, why do they depend on the state government to decide about the price of sugarcane? It is not the responsibility of the state government to decide the sugarcane price. The sugar factories will have to decide what price they will be offering to the farmers for the sugarcane.’’
“The sugar factories will have to quote the sugar price as per their capacity. If they offer a price higher than their capacity and fail to give that to the farmers, the state government will not help such sugar factories to recover their losses,’’ Pawar said.
Speaking about the recent amendment in the constitution regarding the cooperative societies, Pawar said there has been an amendment in the constitution regarding the cooperative societies in the recent Lok Sabha session which will be applicable from January. According to the amendment, if any cooperative society in the country is suspended by the Reserve Bank of India (RBI) and an administrator is appointed on the society, the society will have to conduct elections for the new board members within six months. The board of directors will also have maximum 21 members.
Chief minister Prithviraj Chavan said, “The state government is in talks with the RBI for getting a ‘bank’ licence and status for Maharashtra State Cooperative Bank. It will have to upload audited balance sheets on its website to ensure transparent functioning.’’
Speaking about the sugar industry in the state, he said, “The crushing of sugarcane in all factories will be completed by April end next year and no sugarcane stock will be left, which is a good sign. However, due to the less rain this year, the production will be less. We have requested the prime minister to open the international market for exporting sugar and he has agreed principally.’’
“However, due to the slowdown in the international market, rupee has become weaker in comparison to the dollar. Hence, the exporters will get less price for sugar in the international market and the Centre also will not be able to give financial support,’’ he added.
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