“Sugar Pricing For Industrial Use Should Be Rs.60 Per Kg.” -P.G.Medhe

Mr.P.G.Medhe who is the ex-M.D. & presently Honorary Expert Advisor of Chhatrapati Rajaram S.S.K. Ltd., Kolhapur (Mah.) shares his views as a Co-operative Miller with ChiniMandi on the current market need.

Excerpts:

As you said this year’s production is a bumper season, what step should the government initiate to carry out a smooth flow?
The moves taken by the government by scraping off the export duty & implementing double import duty are highly appreciable. However some steps need to be brought into force with immediate action.
For e.g. 10% compulsory export under MIEQ.
To cover up between the domestic & international rates, the government should give subsidy to the millers because; unless & until sugar isn’t exported the progress in the entire value chain will remain stagnant. With the same, 10% of the stock should also be kept as a buffer stock. If these steps are taken into consideration, the market sentiments would certainly start changing & the sugar rates will be maintained between Rs 3100-3300.

According to you, how should the government maintain a balance between FRP & Sugar Prices?
Currently, the FRP has been fixed at Rs 255 per quintal for the year 2017-18, however before fixing the FRP; the government should consider some certain amount for sugar, which will then compliment to cut down the amount of loss which mills are currently incurring due to high cost of production.
We have put forth a proposal to the government through our Federation asking them to initiate a Dual Price Scheme.
This scheme will contain a separate price of sugar for the consumers approx Rs.30 per kg. & the other will contain a separate price for industrial purpose Rs.60 & to differentiate amongst both the packaging for consumers and industrial purpose should be distinct respectively. Along with which an order to maintain the rate of sugar should also be issued.
The outcome of the scheme would be that the pricing schemes would be fair in the value chain, where the consumers will be happy, the farmers will also be happy, the working of the mills will be smooth & the government will be able to maintain a balance in prices.

Last year cane arrears were 930 crores which have been NIL in the previous year. This year, the cane arrears have shoot up to Rs 14000 crores. Will the farmers receive the FRP?
We are yet paying the installments of the loans taken to pay the FRP to the farmers in 2014/15 & 2015/16 & currently we are bearing Rs.300 per tonne for the repayment.
The FRP is mandatory according to the norms & cannot be ignored, yet the government can assist by restructuring the previous loans maybe by extending the duration so that the FRP can be paid.

Should the Government continue the quota system?
Yes, keeping in mind the current market situation, I feel the quota system which has been taken up since 2 month should be continued for the time being.

What is your view on the improvement phase towards digitization of the mills?
Considering the up gradations & technological advancements coming up in the industry there should be provisions for more efficiency. Programmes to make the farmers & millers acquainted should be conducted. As ChiniMandi has stepped into the industry with a boom, I take the opportunity to wish them All the very Best for the wonderful initiative of bringing the entire sugar industry & all the related information at one STOP! It’s indeed a revolutionary step in to the dynamics of Sugar History.