Maharashtra govt rules out Rs 4,500 cr package for sugar mills

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The government has taken the initiative to plug leakages and relax export policies on molasses to help sugar mills. Asserting that it will not scrap fair price renumeration which makes it mandatory for sugar mills to offer a minimum Rs 2,100 per metric tonne to farmers supplying cane to factories, Chief Minister Devendra Fadnavis said, “The government will extend major relief to the sugar sector by allowing export of molasses in other states or abroad. It would also urge the centre to create a buffer stock of 50 lakh metric tonne of sugar. These measures will go a long way in providing the relief to the sugar mills.”

The government will guard the interest of both farmers and sugar sector with policy reforms, he added.

The 288-member state legislative assembly was clearly divided between Western Maharashtra and rest on the issue leading to isolation of Nationalist Congress Party. In terms of numbers almost 200 MLAs, setting aside party lines, joined hands to counter the 88 MLAs  from Western Maharashtra, which is essentially associated with the home turf of political heavyweights in Congress and NCP.

Congress MLA Vijay Waddittewar countered NCP in the Assembly asking, “Why should cotton growers in Vidarbha which witnessed highest number of suicides get a raw deal?”

Interestingly, Congress, BJP and Shiv Sena consolidated to outwit NCP’s demand for financial package for the sugar mills. The uproar in the assembly lead to adjournment of the House for the day.

The members of ruling Shiv Sena and BJP sought justice for small and marginal farmers in Vidarbha, Marathwada and North Maharashtra and Konkan.

Some of the members representing Vidarbha, Marathwada and Konkan asked, “Show us one case where a sugar mill owner or a cane cultivator has committed a suicide? Where as, cotton belt is worst hit with hundreds of farmers suicides?”

Former deputy chief minister Ajit Pawar told The Indian Express, “The financial subsidy of Rs 500 per metric tonne of sugar cane is the only way out to sustain the crisis in the sugar sector. Even the cash compensation on loans cannot help the sector following major decline of sugar prices in domestic market.”

However, both finance minister Sudhir Mungantiwar and Cooperation Minister Chandrakant Patil said, “If we concede to their demand we would have to provide Rs 4,500 crore. It is just not possible to extend such massive cash compensation.”