Maharashtra sugar mills demand export subsidy

PUNE: Maharashtra sugar co-operatives have demanded export subsidy of Rs 300/tonne each from the central government and the state government.


The ex-mill sugar prices in Maharashtra have fallen to Rs 28/kg from about Rs 34/kg at the time of starting of the crushing season last year. As the mills had agreed for a higher cane price due to high price of sugar, many mills are facing financial difficulties.

The decontrol of the sugar sector did not help sugar prices to improve. As the demand for export as well as domestic market is subdued, sugar mills are carrying huge stocks with them even as the next crushing season is just two months away.

"We have demanded that the central government and the state government should give an export subsidy of Rs 300/tonne each for promoting sugar exports," said an official of the Maharashtra State Sugar Co-operatives Federation.

The Federation has also demanded that the import duty on sugar be raised to 60% from present 15%.