The Indian sugar industry is passing through a financial crisis. The sugar prices are at an all-time low, whereas the cost of producing sugar is very high, as the sugarcane prices have increased by 70% in the last 6 years. This has created an unprecedented liquidity crisis for the industry.
To apprise the Hon’ble Prime Minister Shri Narendra Modi of the difficult times faced by the Indian sugar industry, and to seek Government help to improve the situation, a delegation led by Shri Sharad Pawar met with the Prime Minister at his office on 11th May, 2015.
The delegation inter alia comprised of Shri Vivek Saraogi, Shri Narendra Murkumbi and Shri Abinash Verma.
The members put forth their demand to the Prime Minister that as an immediate solution to the current crisis, the Government should buy out 10% of current year’s production at the FRP based cost of production of sugar. This will help generate a cash flow for the industry, which can be used to clear a part of the cane arrears pending with the industry, as also help improve domestic ex-mill sugar prices.
The Prime Minister has assured the delegation that the issues would be examined and corrective measures would be taken.
The Prime Minister has also sought suggestions from the industry to improve the condition of the sector in the longer run.
Shri Sharad Pawar had also submitted a letter to the Prime Minister, which has been uploaded in the Website, along with this.