The government has decided to revert back levy sugar obligation to 10%. This was announced by Shri Sharad Pawar, Minister of Agriculture, Consumer Affairs, Food and Public Distribution while addressing the 51st Annual General Body meeting of the National Federation of Cooperative Sugar Factories.
He said, the decision has been taken in view of prediction of bumper crop this year. The government had increased levy obligation in 2009-10 sugar season due to less production of sugar in the country.
Referring to demand of decontrol of sugar by the sugar industry, Shri Pawar said that this issue is under active consideration of the Government. However, any decision will be taken only after consultation with various stakeholders.
There are a number of aspects to decontrol and each aspect has to be examined in the context of its nature and impact on stakeholders and apprehensions of all sections need to be addressed, the Minister added.
He said that the decontrol of sugar industry will bring new challenges for the sugar factories and will have to become more self-reliant to deal with these challenges.
On the ethanol issue, Shri Pawar said that CCEA has approved price of Rs. 27 per litre subject to adjustment against the price to be determined by the Expert Committee.
He requested sugar factories to start supplying ethanol so that the programme of ethanol blended petrol stabilizes and becomes integral part of our fuel policy.
The Minister informed that the government has introduced Fair and Remunerative Price (FRP) from sugar season 2009-10 to give remunerative price to sugarcane farmers.
He said, “While fixing FRP we have taken a conscious decision to give a margin of 15% on account of profit and 25% on account of risk to farmers over and above the cost of production and transportation of sugar during 2009-10 season.”