Sugar cooperatives in Maharashtra are in crisis incurring heavy losses due to decline in sugar prices. As a consequence, cooperatives are not able to pay fair and remunerative prices (FRP) to the sugar cane farmers.
This has become a big problem. But the prospects of the resolution of this crisis seem to have brightened up following Maharashtra chief minister Devendra Fadnavis’s recent meeting with the central leaders including finance minister Arun Jaitlely and food and civil supplies minister Ramvilas Paswan.
The center has promised to seriously consider giving subsidies and other financial help to the sugar sector. According to the chief minister, the crisis is over and farmers will soon be paid the FRP Rs. 2,200 per tonne. The center has also agreed to relax the norms of export policies and put higher taxes on import, said the chief minister.
Sources say increased sugar production mixed with a big down-tick in sugar prices had created a difficult situation. The timely intervention by the center would go a long way in easing the crisis, said sources. However, farmer leader Raju Setti has expressed his dissatisfaction saying farmers can not settle for anything less than Rs 2,400 to Rs 3,200 per tonne.
