Factory body wants hike in levy sugar price

GSCSF,which is the apex body of all the 17 sugar mills in the state,wants the levy sugar price to be raised in a bid to ensure better margin for the mills and consequently better payment to roughly two lakh cane-growers — all members of the sugar factories.

Levy sugar is used for sale to Below Poverty Line (BPL) families through the Public Distribution System (PDS).

Incidentally,the state sugar factories,which are all in the cooperative sector,have been making profit.

Even cane-growers receive prices between Rs 1,800 and Rs 2,200 per quintal of cane — almost one and a half times of their counterparts in UP .

But federation officials say the levy prices of Rs 12.32 per kg needs to be raised to ensure proper margin for the factories to meet the increasing input cost in sugar production that have increased in the last few years.

GSCSF Managing Director Arjunbhai Patel told The Indian Express: “The levy sugar price has not been raised in the last five years and it must be reviewed urgently.”

He added that that 20 per cent of the total sugar produced was levy.

“It is not possible to run the mills with 80 per cent of the non-levy sugar being allowed to be sold in the open market,” said Patel.

The mills are now selling non-levy sugar at Rs 3,200 per quintal.

Patel said the organisation had recently sent a missive to the Union Agriculture Ministry in this regard.

“We are waiting for the response,” said Patel.

Asked about the sale of imported sugar in Gujarat,Patel said that powdered sugar was imported in October-November this year.

But the Federation did not oppose it because it was mainly used by soft drink and sweets manufacturers. The common consumer in the state does not like powdered sugar and prefers sugar in granular forms only and hence it did not affect the sale of local sugar,he added.

More than 1.5 lakh hectares in the state is under sugarcane cultivation at present,which is likely to increase with Narmada waters now reaching the fields. Sugar production in the state,which was recorded at 1.09 crore tonnes last year,is also expected to go up this year.