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Industry, govt lock horns over additional sugar buffer stock
New Delhi, June 23: Government is prepared to shell out Rs 800 crore through an additional sugar buffer stock to ensure payment of state advised cane price (SAP) to the farmers in North India, however, the industry is not prepared to accept it on grounds of the stock being region-specific.
New Delhi, June 23: Government is prepared to shell out Rs 800 crore through an additional sugar buffer stock to ensure payment of state advised cane price (SAP) to the farmers in North India, however, the industry is not prepared to accept it on grounds of the stock being region-specific.
"The proposal is to bridge the gap between the Centre's fixed cane statutory minimum price (SMP) and the sap through an additional sugar buffer stock. It will ensure cane price payment is through the millers,” official sources said.
However, industry sources said, "additional buffer after the one created for 20-lakh tonne last year has to be on an all-India basis. We will not accept this region-specific buffer for only North Indian states including up.”
Millers said that it will be premature to even think in terms of an additional buffer for payment of sap as the proposal is yet to be cleared by the finance ministry.
They said that sugar stocks in Maharashtra are much higher than those with the mills in up, so mills in the former state will not agree to a north Indian buffer stock.
Government officials said the millers in Maharashtra were the major beneficiaries of the buffer stock created last year as it was based on stocks with the factories.
The additional buffer proposed now is likely to be on production basis as in the past, they added.
Millers, however, said the sap mechanism has been struck down by the courts and they will not accept any buffer stock thrust upon them with such conditionalities as sap payment.
At one level, "we have contested sap mechanism in courts and by accepting the region-specific buffer stock to pay the SAP will amount to a contradiction, they said.
Bureau Report
However, industry sources said, "additional buffer after the one created for 20-lakh tonne last year has to be on an all-India basis. We will not accept this region-specific buffer for only North Indian states including up.”
Millers said that it will be premature to even think in terms of an additional buffer for payment of sap as the proposal is yet to be cleared by the finance ministry.
They said that sugar stocks in Maharashtra are much higher than those with the mills in up, so mills in the former state will not agree to a north Indian buffer stock.
Government officials said the millers in Maharashtra were the major beneficiaries of the buffer stock created last year as it was based on stocks with the factories.
The additional buffer proposed now is likely to be on production basis as in the past, they added.
Millers, however, said the sap mechanism has been struck down by the courts and they will not accept any buffer stock thrust upon them with such conditionalities as sap payment.
At one level, "we have contested sap mechanism in courts and by accepting the region-specific buffer stock to pay the SAP will amount to a contradiction, they said.
Bureau Report