‘Misinformation led to sugar crunch’

Pawar,who is also the chairman of VSI,also pointed out the lack of a communication channel between sugarcane producers and co-operatives.

Pawar said consumers were going through a tough time due to increase in prices. “This year there was a total of 160 lakh tonnes of sugar in the country while we had a stock of 25 lakh tonnes from last year. We need 230 lakh tonne to meet the demand. To cut the deficit,we are importing raw sugar and the government has entered into agreements for importing 40 lakh tonnes of raw sugar. Of this,20 lakh tonnes have already arrived. This would help us tide over the deficit,” he said.

He said sugar import had several implications as the government had to subsidies cost by as much as 50 per cent but he said the government would work in the interest of the consumer. He also asked owners of sugar co-operatives to introspect as to why the situation had come to such a pass.

Pawar said though many see Maharashtra as the leading sugarcane producer in the country,it was not true.

Tamil Nadu produces 108 tonnes per hectare,Karnataka comes second,while Maharashtra comes third with 78 tonnes per hectare,he said. The state should examine why production is sliding,he said.

Pawar also came down heavily on co-operative sugar factories for selling ethanol and said they need to first assure supply to government-owned oil firms and only then sell it to others. Factories going back on the agreements stand to blacklisted. Predicting that in the coming years,ethanol and co-generation plants would be the main revenue earners for sugar co-operatives,Pawar said the government was making loans available from the sugar development fund at 4 per cent for 10 years for such projects.

“This year,all farmers and sugar co-operatives will get a good price. All sugar co-operatives should pay workers according to the terms agreed between the ministry of labour,workers and sugar co-operatives. Please do not force them to go on strike,” he said.