Union minister for transport Nitin Gadkari on Sunday said that the government has already bent enough policies to help the sugar industry and in the future it would be impossible to extend support the sector which battles with excess output and higher input cost.
Gadkari said that the government in the past has tried to help the sugar industry as much as possible. “However, I have to tell you this bitter truth that the government cannot extend anymore help. It is very difficult to bend policies,” said Gadkari while speaking at the sugar conclave organised by state cooperative bank.
The minister also said that if the industry wants to withstand these difficult times, it has to convert to generating ethanol using new technology. “Excess production is the main challenge before the industry today. On one hand, the industrialists are not getting good rates for their produce and on the other hand, they can’t bring down the production. In such circumstances, producing ethanol from sugarcane is a good option,” said Gadkari, citing his own example of how he sustained loses while running three sugar industries.
Earlier, Nationalist Congress Party (NCP) chief Sharad Pawar said that the coming year will be different for the sugarcane sector as it will see 40 per cent reduction in the production owing to drought. This year, area under sugarcane in Maharashtra, the second largest producer of sugar in India, has fallen by 28 per cent due to deficient rainfall last year. This means, the production may come down to 65 million tonnes, according to government officials.
{{/usCountry}}Earlier, Nationalist Congress Party (NCP) chief Sharad Pawar said that the coming year will be different for the sugarcane sector as it will see 40 per cent reduction in the production owing to drought. This year, area under sugarcane in Maharashtra, the second largest producer of sugar in India, has fallen by 28 per cent due to deficient rainfall last year. This means, the production may come down to 65 million tonnes, according to government officials.
{{/usCountry}}The government has in the past extended incentives to sugar mills for overseas sugar sales to reduce cane arrears and bring down inventories.
’One window clearance policy’
To remove any hurdles for sugar mills wanting to set up ethanol production unit, chief minister Devendra Fadnavis, who was present for the sugar conclave, said that the government is working on a “one window clearance” policy. The government is constituting a group of ministers, who will come up with the policy within a month.
Fadnavis also said that sugar mills had promised to switch to drip irrigation though they did not follow it. “If the industries do not shift to drip irrigation, the government will have to take action,” warned the CM.