Sharad Pawar defends sugar industry in Marathwada

PUNE: Maharashtra sugar industry's de facto leader Sharad Pawar came in defence of the sugar mills in drought hit Marathwada, being blamed for the water crisis in the region saying Marathwada had sugar mills from last 20 years but water scarcity happened now due to the drought. Every sugar mill in the state has committed to spend upto Rs 25 lakh for water conservation in the state.

Apart from telling mills to take a share in helping tackle drought, Pawar also advised sugar mills about the impending central government actions in the wake of rising prices.

As centre mulls imposing stock limit on sugar to tame rising prices, Pawar, who would be meeting central government authorities on April 26, said retail prices should remain around Rs 40 per kg so that mills can repay their debt as well as pay the cane price to farmers and it does not hurt the consumers too.

The current stock of sugar in Maharashtra is 72 lakh tonne as compared to 44 lakh tonne in Uttar Pradesh. "Central government thinks that Maharashtra mills are hoarding sugar. However, the mills that want to sell sugar, traders were not ready to lift it. So we will offer the central government to buy the quanty of the sugar that is not lifted by the traders for their public distribution scheme," said Pawar while addressing a meeting of Maharashtra's cooperative and private sugar mills.

He added, "The central government needs to be sympathetic about the mills till they repay their soft loan."

Clarifing about his recent statement that eventhough he was not in power, he will not let sugar prices fall, Pawar said, "What we want is that sugar prices should not fall so much that the mills will not be able to pay the government mandated FRP and will have to approach the government again for financial assistance."

He also advised sugar mills to keep selling sugar without waiting for further rise in prices.

Maharashtra cooperation minister Chandrakant Patil asked the sugar mills to clear the cane payment arrears of current season woerh Rs 3100 Crore by May 1.

"Anything can become an issue and lead to fall of the government like prices of onion, pulses and sugar. The mills should sell sugar at least to pay the remaining FRP," said Patil.