Former Finance and Cooperation Minister Dilip Walse-Patil has called for urgent assistance from the state government and the Centre to help the cooperative sugar industry in Maharashtra, which is facing a severe financial crisis. Walse-Patil, an NCP legislator, highlighted that adverse weather conditions have caused a 15% decrease in sugarcane production in the state this year, leading to the premature conclusion of the crushing season in less than 100 days.
This early end has resulted in a significant financial setback of Rs 3,300 crore for the sugar industry, with Rs 4,315 crore in Fair and Remunerative Price (FRP) payments to farmers still outstanding. Walse-Patil cautioned that without a revival package from the state government, the cooperative sugar industry, crucial for rural Maharashtra, could collapse within the next two years.
The former minister emphasized that the sugar industry is not just a cluster of factories but an economic powerhouse. Generating around Rs 8,000 crore annually for the Central and State governments through various taxes and duties like GST, cess, and electricity duty, this industry has an annual turnover ranging between Rs 50,000 and Rs 60,000 crore.
Walse-Patil stressed the need for an immediate increase in the Minimum Selling Price (MSP) of sugar, re-incentivization of ethanol production, and an expansion of the sugar export quota allocated by the Centre. He also proposed the adoption of a structured and time-bound mechanism by the state government to raise funds and clear cane arrears, similar to the soft loan scheme introduced by the Centre during the 2002–03 sugar season.
