Corona pandemic has severely affected the sugar industry with cooperative sugar factories finding it difficult to sell the sugar released by Central Government, at the rate of Rs 31 per kg and thus upsetting its economic cycle. In fact, they have not been able to sell even 50 per cent of the quota.

National Federation of Co-operative Sugar Factories has already  taken up this issue with the Centre urging it to extend the period for sale sugar quota and declare a limited sugar quota for next month.

The factory wise quota for sale of sugar is reported by Central Government every month. It is based on the sugar production figures of factories across the country so that all the small and big factories operating  in different parts of the country, can sell their sugar. 

However, a review of the quotas released in the last six months,  sugar sales and lapsed quotas, it seems that the quota of co-operative sugar mills has remained unsold almost 50 per cent and only half of the quotas received could be sold and that too at Rs 31 per kg but even at this rate, cooperative sugar mills are finding it difficult to sell.

As a result of all this, the co-operative sugar mills have been under stress due to the amount of blocked in the sugar stock of the co-operative sugar mills and the daily rising interest burden on them, which has led to stagnation of farmer’s cane bills, staff salaries and clearing other over due payments.

Against this backdrop,  Central Government announced a record sugar quota of 22 lakh tonnes in April. This  April quota is 4 lakh tonnes more than the average of 18 lakh tonnes announced in last five year.

Jaiprakash Dandegaonkar, president, National Federation of Cooperative Sugar Factories, said, “While the sugar consumption got affected due to the nationwide lockdown imposed in March last year and thus shutdown all confectionery, soft drinks, chocolates, biscuits and sweetmeats business and reduced sugar sales by nearly 1 million tonnes. This will adversely affect the sale of sugar. We, the National Federation of Co-operative Sugar Factories  have brought the issue to the notice of the Central Government and requested to extend the period for sale of quota sugar and declare a limited sugar quota for next month.”