Sugar Industry

Rahul Kumar

Sugar Industry is in the doldrums

To some extent this is not far from truth. The industry has been facing an unpleasant period. Not only the sugar industry but also most agro-industries are facing a difficult time. Whether it is food grains, like Paddy and Wheat, or Oil seeds like Groundnut and Coconuts or money crops like Turmeric, Banana or Sugarcane, they have all been relegated to a situation of getting an unreasonable price or perhaps a lower price. Just how much Mexican sugar can enter the American market this year is in dispute. Sugar is nightmare in terms of trade negotiations. Most of the sugar mills, not only in Tamilnadu, but throughout our country are facing huge loss due to the poor performance of the marketing conditions.

Sugar Industry

Raj Mitthal

Greater scope for Sugar Industry

Getting an unreasonable price or perhaps a lower price is a situation not only in India but also in other countries of the world. Mexico is getting greater access to the American sugar market. And in 2008, the agreement will give Mexico unlimited access to the American market. It does not prove that the scope for sugar industry has been reduced. The centre proposes to establish a National Sugarcane Price Fixing Board (NSPFB) for fixing cane prices payable by factories, as against the existing practice wherein prices are determined by individual State governments by way of State Advised Prices (SAP). Also eight more sugar factories, in the private and the cooperative sectors, will be set up this year and the next. There was a need for 25 sugar units in the state and most of the eight new units would be set up in districts such as Bidar and Belgaum based on the area available for sugarcane allocation. Apart from this the experts had been asked to prepare a report, the conversion of byproducts of sugar factories into fuel as was being done in Australia and New Zealand. The Cooperative Act would be amended to ensure quality and productivity, and financial discipline in sugar factories as this was one of the factors responsible for losses.