Maharashtra Cabinet approves subsidies for transport and low recovery to sugar factories

In a big relief to the sugar mills in Maharashtra, the state cabinet on Thursday approved a subsidy for transportation of sugarcane and reduction in sugar recovery. This was necessitated as the state expects to set a record of sugar production of 133 lakh tonnes during the ongoing crushing season 2021-22 in view of the excess sugarcane as the area under cane rose from 11.4 lakh hectares in 2020-21 to 12.3 lakh hectares.

Sugar factories had sought subsidies as they are under tremendous pressure to cut the standing sugarcane and crush it even after May 1. As per the cabinet decision, a Rs 5 per km transport subsidy will be given except 50 km distance as laid down by the sugar Commissionerate for the earmarked sugarcane for an individual sugar factory.

In addition, the government will give Rs 200 per ton subsidy to cooperative and private sugar factories if the sugar recovery slips below 10 per cent. This will be given for crushing of sugarcane after May 1.

Maharashtra will surpass Uttar Pradesh with a record production of 133 lakh tonnes during 2021-22 crushing season. It will be 25% more than the 2020-21 crushing season. The state’s 133 lakh tonnes sugar output will be 38% of the estimated national sugar production.