Chennai:
The central government has decided to issue release orders
for free sale sugar for those factories that have imported
raw sugar under the 'advance license scheme' and have
export obligations to fulfill. Such factories will also
be exempted from the levy obligation of 10 per cent of
their total production.
Announcing
this while inaugurating the 46th annual meeting of the
general body of the National Federation of Cooperative
Sugar Factories Limited (NFCSF) Sharad Pawar, minister
of agriculture, consumer affairs, food and public distribution,
said that on imports after October 1, 2005 the export
obligation will be on 'grain-to-grain' basis.
"This
decision has been taken keeping in mind the better production
prospects next season (2005-06) and also the fact that
about 24-lakh ton of raw sugar had already been imported
so far. The facility of export obligation on raw sugar
import on the advance license scheme has so far been on
a 'ton-to-ton' basis and not on 'grain-to-grain' basis
till October 1, 2005."
Referring
to the financial package being worked out for the sugar
industry by the government, Pawar said that NABARD has
mooted proposals amounting to Rs250 crore for the entire
country related to rescheduling of loans and reducing
interest rates for loans to sugar industry. The rules
for restructuring the 'sugar development fund loans' for
potentially viable sick sugar mills is also under the
consideration of his ministry and a decision will be taken
soon.
According
to him the ministry will be issuing sanctions of claims
for ocean freight neutralisation and marketing / handling
charges for export of sugar from next week. As regards
revision of levy sugar price, Pawar said that a decision
would be taken shortly.
Referring
to the demand by the Indian Sugar Mills Association (ISMA)
and NFCSF on the abolition of sugar release mechanism,
Pawar pointed out that, "unless and until we are
able to sustain sugar prices and bring it around Rs1,600
per quintal, the system should continue". It should
certainly be there at least for the coming one or two
years, he added.
Sugar
production during 2005-06 is expected to be about 180-lakh
ton against 130-lakh ton in 2004-05 and 140-lakh ton in
2003-04. The government had managed to meet the demand
for sugar for indigenous consumption without import of
white sugar by taking timely decision to allow imports
of raw sugar, Pawar pointed out.
However,
he expressed concern on the low level of investment in
the agriculture sector and called for higher investment
to save the farmers from the vagaries of monsoon for agriculture
operations including sugarcane cultivation. The total
money invested in the agricultural sector during the last
seven years is not more than 2.5 per cent of the budget
as against 16 per cent investment in the telecom sector.
Similarly, sufficient investment should be made in the
irrigation sector as the total money given to irrigation
was only 0.35 per cent of the budget, he said.
He
also distributed awards to winners of efficiency in sugar
sector in categories of technical efficiency, cane development,
financial management and best cooperative sugar factory
for the year 2004-05.
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