Chief minister bans import of sugarcane from other states

Maharashtra on Sunday banned the import of sugarcane from other states to tackle 30% surplus production of the crop. The decision was arrived at following a high-level meeting chaired by chief minister (CM) Ashok Chavan, which included deputy CM Chhagan Bhujbal, Nabard chairman Umesh Sarangi, cooperation minister Harshvardhan Patil and agriculture minister Balabaheb Thorat.

Chavan said: “The government will have to ensure the functioning of 163 factories if 753 metric tonnes of sugarcane are to be crushed. If another 100 metric tonnes are considered, 20 more factories will have to be roped in.”

A government source said: “A Rs300-crore package to revive some closed sugar factories is being worked out.” Also, a committee is being formed to look into the disposal of assets of the factories which cannot be revived.

Surplus production has given rise to the spectre of farmers and factory owners suffering losses, and the government incurring additional expenditure by way of compensation to the factories.  

But some in the government fear that the import ban may kill competition, which will ultimately affect farmers, who will have to adhere to statutory prices.

State Congress spokesperson and sugar expert Kanhaiyyalal Gidwani said: “The sugar factories located in Kolhapur (along the Maharashtra-Karnataka border) generally import sugarcane from Karnataka. These factories are issued multiple permits by the government. Does the import ban extend to these factories?”

Sugarcane farmers in Karnataka find it economically feasible to send their crop for crushing to the Kolhapur factories.