Sugar cooperatives demand relaxation in export norms
SURAT: The sugar cooperatives in Gujarat have demanded that government allow export of sugar at zero per cent duty to ease the fear among sugarcane farmers who are facing a bumper harvest this season. Gujarat sugarcane farmers contribute about 8% of the total sugar produced in the country.
Former chairman of Madhi Sugar Cooperative Dilip Bhakta told TOI, “Farmers are expecting drastic drop in sugar prices as there is much more sugarcane available for crushing. Government need to create a buffer stock of 15-20% of the production at a reasonable price. This would instil some confidence among the farmers and prices could settle down at Rs 3,400 per 100 kg.”
Chairman of Bardoli Sugar Cooperative Pankaj Patel said, “Allowing export at zero duty could also do the trick. Many would be inclined to send their produce abroad at fair price and it would reduce the burden on local market. In addition, if government could come up with some incentive scheme for exporters, it would be even better.”
According to sugar cooperative experts, stock was piling up due to over production and unless government intervenes things wont improve.