The department of food and public distribution has initiated action on the report of the Dr Rangrajan Committee. The feasibility and the time-frame of implementing the various recommendations were under deliberation, and a considered decision would soon be taken on some of these issues.
This was stated by K V Thomas, minister for consumer affairs, food & public distribution, while inaugurating the 53rd Annual Meeting of the General Body of National Federation of Cooperative Sugar Factories Ltd here on Wednesday.
Highlighting measures taken by the government for the development of sugar sector, the minister said that Indian sugar production continued to surpass the domestic requirement. Hence the supply of sugar during the last season was uninterrupted and at stable prices.
This enabled the government to take certain decisions which gave some amount of freedom to the industry to enable it to plan cash flows and clear cane price arrears.
The Ethanol Blending Programme has been reiterated by the government which would help the sugar industry to improve its bottom-line and commitment to make timely payment to the cane farmers.
The department of food and public distribution has already made a request to the petroleum ministry to take quick decision regarding notification of mandatory blending of ethanol with petrol. In view of good production of sugar during the last season, the government had permitted exports of sugar under OGL.
This, along with the firming up of sugar prices, has helped clear the cane price arrears. He added that sugar prices were bearish globally, and the challenge lied in improved technical efficiency to provide the consumer with globally-competitive prices.
He said that a demand had been made for increase in the import duty of white and raw sugar. The issue has been taken up with ministry of finance. He urged the industry to take necessary steps for increasing cane productivity and look at varietal change so that it resulted in better prices for the consumer without harming the farmer.
Sharing concern of the sugar industry regarding the delay in the notification of levy sugar prices for the year 2012-13, Thomas said that he had directed the department of food and public distribution to expedite the notification and ensure that the mills do not suffer on this account. Notification regarding the decision of carry forward of levy sugar would also be issued soon.
He said that it is heartening to know that the sugar industry, especially in the cooperative sector, is committed to the development of renewable energy through biogas-based generation of power.
The government is committed to improving the viability of sugar mills through favourable assistance from the Sugar Development Fund, but the viability of the sugar mills viz-a-viz their capacity to repay the loans, which are public funds, need to be considered. Thomas said it was painful to note that over Rs 500 crore SDF loan was outstanding against sugar mills in the cooperative sector which could have been used for further development of fellow sugar undertakings.
The need of the hour was better management of sugar undertakings in the cooperative sugar with cooperation of the sugarcane farmers, he asserted.
Congratulating the National Federation of Co-operative Sugar Factories for its yeoman service in the development of industry, Thomas said that there was need to further professionalise the organisation in the background of technological changes taking place in the industry.
He said that he would expect more outputs from the research and development centre of the NFCSF, which would be a fitting tribute of the federation to the industry in the international year of co-operatives.
The minister reiterated that the government was committed to play the role of facilitator in the development of the sugar industry, and had taken appropriate measures to enable the industry to perform better.
Congratulating the efficiency awards winner on the occasion, Thomas said that these efforts would make the sugar industry vibrant and the government would do everything to support the industry reach its pinnacle.
