The surplus domestic stock coupled with global surplus situation has resulted in low sugar prices in the domestic market and consequently low realization from sale of sugar.
This has adversely affected the financial health of the sugar mills including those of cooperative sector.
The Central Government has taken appropriate steps as and when needed to help the sugar industry in the last three seasons which inter-alia included abolition of levy obligation on the sugar mills for sugar produced after October, 2012, dispensing away with the release mechanism on sale of sugar, liberalization of sugar export and increase in import duty from 10% to 15%.
The Central Government has recently constituted an informal group of Ministers under the Chairmanship of Minister of Agriculture to look into the problems being faced by the sugar industry.
This information was given by the Minister of Consumer Affairs, Food and Public Distribution, Prof. K.V. Thomas in a written reply in Lok Sabha today.
The Minister said that the measures initiated by some of the States to make the sugar factories of their States competitive, professional and innovative are as follows:
ANDHRA PRADESH:- State Government of A.P. is taking steps for modernization/major additions of the machinery items for improving efficiency of the cooperative sugar mills two strengthen the financial position. State Government is extending Guarantee to the cooperative mills having negative net worth to enable them to avail for working capital loans given by A.P. State Cooperative Bank Limited and also extending financial support by way of loans/grants towards payment of cane price dues /better cane price during last three sugar seasons.
Rashtriya Krishi Vikas Yojana (RKVY) scheme is being implemented in the sugarcane crop by the Agricultural Deptt. , being a nodal agency for arrangement of harvesters with the technical assistance of Sugar Deptt.
MAHARSHTRA:-To increase the productivity of cane with judicious use of water, programme to take 9 lakh hectare of area under drip irrigation in coming 4 years is initiated. Also Energy and Cost Audit has been made mandatory to all cooperative sugar mills so as to make them Cost & Energy effective resulting into lowering down production cost.
Business Intelligence (BI) tools is being developed by Commissionerate of Sugar to compare production cost of different sugar factories and thereafter suggesting measure to bring down production cost.
TAMIL NADU: - Co-generation alongwith modernization projects are being implemented in 10 cooperative sugar mills which are under erection and will be completed in next season. Distillery-cum ethanol plants are proposed in 2 more cooperative sugar mills.
UTTARAKHAND:- Diagnostic study has been carried out through National Federation Co-operative Sugar Factories, New Delhi for modernization, Optimization and balancing of 6 sugar mills to improve the availability of raw material i.e. sugarcane & technical efficiency so that the financial conditions of these mills get improved.
