Pawar demands waiving off income tax dues from sugar mills

Speaking at the Efficiency Awards distribution ceremony of the National Federation of Cooperative Factories (NFCSF) on Tuesday, NCP Supremo Sharad Pawar said that Indian Sugarcane farmers have a huge opportunity this year as the major sugar-producing countries such as Brazil and Australia have registered a low production.

Pawar was speaking in Delhi at the NCUI Auditorium, in which B L Verma, Junior Union Co-op Minister was the chief guest. The dais was filled up with captains of sugar co-ops, mostly from Maharashtra.

Thanking the Modi govt for waiving off income tax dues on sugar mills for the last five years due to Corona, Pawar pleaded that the tax levied since 1992-93 must be waived off to ease the burden on sugarcane growers. “There are dues for more than 24 years and even if the mills are sold, the dues cannot be repaid. If you want to save the sector, please get dues waived”, exhorted Pawar.

Asking co-operators connected with the sector to modernize sugar mills, Pawar said more and more diversification be sought for the viability of the sector. He cited the latest example of diversification in Europe in which green hydrogen is being made from molasses. “CNG, Ethanol, and green hydrogen are some of the possibilities”, he said.

“Things have changed from the past as more and more new states have registered growth in sugarcane production”, said Pawar citing southern states of Tamil Nadu, Karnataka, and Gujarat. Meanwhile, the sugar mills of Uttar Pradesh have done quite well by registering a massive increase in recovery. Others should take inspiration from them, exhorted Pawar, who is held as a leader owing to his rise to sugar politics.

Speaking on the occasion, the chief guest B L Verma said that there are 461 sugar mills in the country and most of their machines have become obsolete. “The situation is especially grim in the sugar mills of UP and Bihar and we must adopt new technology to remain competitive”, underlined Verma.

Lauding the high MSP announced for sugarcane by the Union govt, Verma said the decision has benefitted 5 crore farmers. He also thanked the govt for forming a new ministry for cooperation and anointing Amit Shah as its first Minister. It is worth mentioning that Sharad Pawar has taken a dim view of the creation of a separate ministry for cooperation.

Welcoming the guests, the NFCSF Chairman congratulated the winners of the Excellency Awards. Jaiprakash Dandegaonkar said that the govt has given licenses to 400 sugar mills for ethanol production but few are actually producing the same due to the fund crisis.

Elaborating, Dandekar said for four years the sugar mills have suffered and their balance sheet is such that the banks are not ready to give them loans. Even investors are shying away as there is no guarantee of return from the sector. There should be a five-year guarantee from the govt for buying ethanol so that investors’ confidence is restored, he felt.

Nitin Gadkari, who was expected to participate, could not make it due to his prior engagements.