Ram Gopal Yadav

The Maharashtra government may look to revive at least 40 non-functional cooperative sugar mills in the state possibly by acquiring and leasing them out. Government has formed a committee under the chairmanship of State Sugar Commissioner Sambhaji Kadu-Patil to conduct a financial and technical evaluation of the assets of these shuttered sugar factories. The committee has been asked to submit its report before Sep 20. Maharashtra has 175 cooperative sugar factories, out of which 93 are functional, 33 has been already acquired under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and six have been sold by government.

The response to the government allowing more import of raw sugar has been robust, with millers having sought to import three to four times the allowed quota. Like last time, govt have received a lot of applications. The quantity applied for is almost three-to-four times the approved quantity of 300,000 tonne. Shree Renuka Sugars and EID Parry have applied for the maximum quantity.

Sluggish demand from bulk buyers weighed on prices of sugar in the key wholesale markets of the country. Prices of medium-grade sugar fell 10 rupees per 100 kg each in Delhi and Muzaffarnagar, and were down 5 rupees each in Mumbai and Kolhapur. Trade is subdued as demand is extremely poor. Buyers are making need-based purchases only, probably in anticipation of a further fall in prices.