On Thursday, February 29, officials from the National Federation of Cooperative Sugar Factories (NFCSF) convened with Union Food Secretary Sanjeev Chopra, Joint Secretary (Sugar) Aswani Srivastava, Director (Sugar) Sangeet Singla, and other sugar department officials to discuss the challenges confronting sugar mills and the broader industry. They elaborated on these issues, emphasizing how sudden ethanol production restrictions were precipitating a financial crisis.
Highlighting the prolonged sugarcane crushing season in Maharashtra and its impact on sugar recovery, they noted an approximate surplus of 18 lakh tonnes of sugar at season’s end, necessitating its utilization in ethanol production. Additionally, they suggested utilizing surplus “B” molasses stocks for juice/syrup, awaiting announcement of new ethanol rates.
The government’s directive to sell at least 90 percent of sugar quotas from February was cited as a factor driving down sugar prices by Rs 250 per quintal and reducing trader participation in tenders, resulting in unsold quotas by month-end. They urged relaxation of the 90 percent sales restriction.
Despite the government freezing the Minimum Selling Price of sugar at Rs. 31 per kg since February 2019, sugarcane prices have risen annually, necessitating an increase in the sugar price to ensure timely and full payment to farmers. They proposed linking sugar prices to sugarcane prices as per condition 4 of the Sugar Price Control Order, potentially reaching Rs 40 per kg, supported by the CACP’s report.
A plea was made for the government to consider implementing a “Sugar Reserve Stock Scheme” to alleviate industry challenges.
Central officials acknowledged these concerns and pledged to explore resolutions.
Under the leadership of NFCSF’s new President, Shri Harshvardhan Patil, initiatives to support the sugar industry have commenced swiftly.
This proactive approach was evident when Shri Patil led the new Board of Directors to meet Union Home and Cooperation Minister Shri Amit Shah in New Delhi on the day of his election. Future board meetings are planned across various states to engage member sugar factories and address their issues, along with scheduled meetings with Union Food, Finance, and Home/Cooperation Ministers.
