National Federation of Cooperative Sugar Factories (NFCSF) has said that increase in Revised Budgetary Allocation for the financial year 2021-22 for sugar industry will enable the sugar mills in payment of cane arrears to the farmers and there by reduce the cane price arrears.
“RE (revised estimates) for sugar industry for the Financial year 2021-22 has been increased from ₹4,337 crore (BE) to ₹6,844 crore (RE). This increased budgetary allocation of ₹2,507 crore would enable the Government to settle the pending claims of sugar mills under schemes for assistance to sugar mills for 2019-20 and export assistance for 2020-21 season. This would increase the liquidity position of the sugar mills and help them in payment of cane & other arrears. This decision of the Government has pleased the sugar industry as it would help them in payment of cane & other arrears which would be a boon to the sugarcane farming community, said NFCSF in a statement.
To provide financial assistance for creation of additional Ethanol production capacities by sugar mills, Rs.160 crore & Rs.300 crore provision has been made in RE 2021-22 and BE 2022-23 respectively. This allocation would go a long way in creation of additional capacities for production of Ethanol and achieving the target of EBP.
Additional duty of Rs. 2 per ltr on non-blended petrol w.e.f. October, 2022 is expected to help increasing consumption of ethanol at retail point. This decision will also encourage to attract new investment in creating additional distillation capacity in the country. All in all, this step is in line with the mandate of encouraging ethanol blended programme in the country, We, the representatives of country’s cooperative sugar sector distilleries welcome this decision.
Creation of additional capacities for production of Ethanol in the country would help not only production of more Ethanol, but also help reduction in surplus sugar, which would in turn arrest further drop in the sugar prices and thus help in improving the financial health of the sugar mills, thereby enable them to make timely payment of cane price to farmers. Increase in Ethanol production would also ensure adequate ethanol supplies for ethanol blending with petrol to meet the targets set by the Government, which in turn would help in saving precious foreign exchange required for importing the oil and also help in improving air quality,” NFCSF said.
Reduction of Automatic Minimum Tax from 18.5% to 15% would encourage the growth of the cooperatives across the country. This is in line with newly formed Cooperation Ministry’s mission to rejuvenate the cooperative sector and it is a welcome move.
Reduction in surcharge on Cooperative Societies would bring them at par with corporate and encourage healthy level playing field.
NFCSF welcomes these three decisions announced by Govt. of India and extend thanks.
