The cheap import of sugar into the Indian market by some traders has affected the country’s retail market. This is the reason that Maharashtra State Cooperative Sugar Factories’ Federation wants the central govt to spike import duty to 60 percent as discouragement to this unfair trade practice.
Fearful that the Indian sugar produce may not survive in a highly competitive international market, Maharashtra State Cooperative Sugar Factories’ Federation insists the central govt. provide them a financial assistance of Rs. 800 per quintal. According to the federation, this would greatly strengthen their ability to overcome the current external challenge.
Chairman of the federation Vijaysingh Mohite Patil has also urged the central govt. to create a buffer stock of 50 lakh tonnes of sweetener in the country. Mr. Patil said the central govt. had created a buffer stock in a similar situation earlier and the step had proven to be beneficial.
Patil said the country’s surplus sugar could also be exported to earn money to provide farmers with some income if the govt. offered subsidy component to the sugar factories.
According to Patil , Maharashtra’s sugar industry pays substantial taxes to both the central and the state govts, and therefore it is incumbent on them to intervene when the sugar sector is experiencing a serious financial crisis. His organisation has called on chief minister Prithviraj Chavan to leverage his influence with the central govt. in this connection, Mr. Patil added.