OP Dhanuka, CMD – Riga Sugar Company and past President of Indian Sugar Mills Association and Bihar Sugar Mills Association, has criticised the recent relief package announced by the Centre for the sugar industry.

According to him, the so called “big relief” announced is a mockery and not in line with the industry’s expectations. Cane growers, he said, are suffering for last three years and mill payment arrears are now Rs 21,000 crore.

Farmers and factories, Dhanuka said, were hoping for relief such as creation of buffer stocks, fixation of cane price linked with sugar price realization for the next season 2015-16 and abolition of state discretionary power of fixing cane prices; purchasing sugar from factory gate at cost prices and exporting the same through government agencies; and, re-structuring of Rs 36,000 crore of debts of the sugar industry.

These measures can lead to ex-factory sugar prices – currently prevailing between Rs 22 and Rs 25 a kg – to move upto Rs 32-35 a kg.

According to Dhanuka, the decision on removal of excise duty on ethanol supplied for blending will help only ethanol producing sugar factories that too from next year and this help will be marginal.

“The relief (announced) are just eye-wash. None of the announcements can solve the present problems of sugar industry and cane growers,” he said, as per a release.

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