The cooperation department of the Maharashtra has moved a proposal to buy 25 percent of the Sugar produced by Sugar cooperatives. The order is aimed at placating Sugarcane growers in the state who are currently restless as their dues are not being paid by Sugar cooperatives.
The state government has shown willingness to acquire Sugar from Sugar cooperatives at Rs 32,000 per tonne. By this, the government feels, it will help to keep the prices of Sugar steady in the market.
According to a senior cooperation department official, this year government declared the fair and remunerative price of Sugarcane (FRP) at Rs 2,550 per tonne. It was assumed that the prices of Sugar will be around Rs 35,000 per tonne.
However, currently Sugarcane prices are hovering around Rs 28,000 to Rs 29, 000 per tonne, while in international market the prices have dropped to Rs 21,000 per tonne.
Maharashtra accounts for nearly one third of Sugar production in the country. This year, the area under Sugarcane cultivation is around 9 lakh hectares and it is expected to produce 72.2 million tonnes of Sugarcane while Sugar production is expected to be around 7.34 million tonnes.