New Delhi: Following the delay in taking decision on sugar exports by the government, the sugar mills can fail in giving payments to the sugarcane farmers.

The sugar industry has urged the Centre to come out with a decision as early as possible. The sugarcane farmers can benefit, if the permission for sugar export is granted in the beginning of the sugar year (October-September).

Following good deals in the international market, the export deal can prove beneficial.

National Federation of Cooperative Sugar Factories Managing Director Vinay Kumar said that the crushing season has begun and there is sufficient carryover stock of sugar. Over 250 lakh tonne of sugar is expected to be produced during the crushing season and the demand will decrease due to end of festive month.

The government has earlier announced that sugar export will be declared after Diwali. But, the repercussions of this delay will be faced by the sugarcane farmers.

The sugar industry is demanding at least 10 lakh tonne of export every month for next 3-4 months.

Kumar has suspected that the delay can stop payment to sugarcane farmers which will not be right for the sugar industry next year.
Replying to a question on ethanol mixing in petrol, he said, “Petrol price has reached Rs 70/litre and ethanol is available for Rs 27/litre and spirit for Rs 34/litre. If the government does not fulfill its promise to modify prices of ethanol, the mills will start manufacturing spirit which can affect ethanol production.”

JPN/Bureau