Orissa to prepare an action plan for sugar industry

BHUBANESWAR: In a belated move, the Orissa government has decided to prepare an action plan to promote sugar industry in the state, which has been languishing due to lack of proper planning and shortage of raw materials.

The state owned The Industrial Investment Promotion Corporation of Orissa Limited (Ipicol) will prepare the draft plan to give a fillip to the industry. .

"The new food processing status will help the sugar units to attain higher growth and enable the entrepreneurs to avail various incentives, including easy finance," a senior government official said here on Tuesday.

Only recently, the Orissa government became the first state to accord "agro-food processing industry" status to sugar industry following hectic lobby by the Orissa Federation of Sugar Industries [OFSD]. This move is expected to provide sustenance to thousands of sugarcane growers who are depending upon a half a dozen of sugar industries for their sustenance.

In 2007, the state government had formed a Task Force under the industry secretary to promote the sugar industries to facilitate the farmers earn a good return on their investment. Representatives from six sugar mills located at Dhenkanal, Nayagarha, Badamba, Aska , Baragarh, Bolangir were taken in as the Task Force members while managing director of Ipicol was the member convener. The Task Force was to formulate an action plan for sugar industries, but nothing has materialized so far.

"The state government - after having been convinced by the arguments made by the representatives of the OFSI and after due deliberations -accorded agro-food processing industry status to the sugar units. This will help the sector to get funds from financial institutions as well as avail certain other governmental benefits," said industry minister Raghunath Mohanty.