The 52nd Annual Meeting of National Federation of Cooperative Sugar Factories Limited was inaugurated by Jayanti Bhai Patel, Chairman of apex sugar cooperative in New Delhi. Prof. K.V. Thomas, Union Minister for Consumer Affairs, Food & Public Distribution was the Chief Guest.
Mr. Vinay Kumar, Managing Director of National Federation of Cooperative Sugar Factories Ltd and a number of delegates were present on the occasion.
Prof Thomas said that we are meeting at a time when Indian sugar production is on an upswing from 2010-11 seasons. The country has produced around 24.30 million tonnes of sugar this year which was more than our annual consumption requirement.
In order to ensure that the higher production does not lead to mounting cane price arrears and to keep sugar prices stable, the Government allowed sugar factories to export sugar. The objective was to avoid sugar stock build up and resultant drop in prices.
Keeping in view the estimated opening sugar stocks and the estimated domestic production and consumption in 2011-12 season, the Government will take appropriate steps to maintain price stability, he added.
The concept of Statutory Minimum Price (SMP) has been replaced by the Fair and Remunerative Price (FRP) of sugarcane with effect from 2009-10 seasons. The FRP provides for upfront payment of margins on account of profit and risk to sugarcane farmers, which was not available under SMP. Further, the Government has allowed sugar factories to produce ethanol directly from sugarcane juice.
Mr. Jayantibhai Patel, Chairman, NFCSF mentioned in his speech that the issue of de-control of sugar has been hanging fire since long and that this is the opportune time to decontrol. I have requested the Prime Minister to request Dr. C. Rangarajan to look at the issues relating to de-regulation of the sugar sector so that the long standing demand of the industry is examined in a non-partisan manner, he added.