Chavan has sent a proposal outlining 11 demands to pull the sugar industry out of this crisis caused by surplus production and drying of short-term loans from district banks.
The state is facing a problem of plenty — in the case of sugar production. Chief minister Prithviraj Chavan will meet prime minister Manmohan Singh on Thursday in New Delhi to press for changes in the policies to salvage the sugar sector in Maharashtra.
Chavan has sent a proposal outlining 11 demands to pull the sugar industry out of this crisis caused by surplus production and drying of short-term loans from district banks.
High on the Chavan’s agenda is to get the green light from the Centre to export 20 lakh metric tonne of sugar from Maharashtra. The total production this year is estimated at 82 lakh metric tonne and 1.5 lakh metric tonne of sugarcane crushing is still underway.
The delegation that will meet Singh will also include deputy chief minister Ajit Pawar, minister for cooperation Harshvardhan Patil and agriculture minister Radhakrishna Vikhe-Patil.
The state government also wants the Centre to drop the commodity from the forward market to stabilise the price. If the demand to regulate the sugar stock is not accepted, prices would crash and this would adversely affect the sugar factories and sugarcane farmers.
“The sugar industry is heading for a severe crisis as Rs1,500 crore short margin loans from the district banks have been blocked making it difficult for the factory owners to make payments to lakhs of sugarcane farmers,” said Patil.
A recent satellite map survey showed that 10.49 lakh hectare are covered by sugarcane. Patil admitted, “There are signs of more production next year.”
In its draft proposal, the state has demanded that the Centre keep 50 lakh metric tonne of sugar as buffer stock. The state is also upset as the Centre has not yet defined the prices for the levy on sugar. Since 2004, the Centre has not paid the state dues of more than Rs 100 crore.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}