Inaugural Address of Prof. K.V. Thomas, Union Minister for Consumer Affairs, Food & Public Distribution at the inaugural function of the 52nd Annual Meeting of National Federation of Cooperative Sugar Factories Limited
Shri Jayantilal B. Patel, President, Mr. Shankarrao G. Kolhe, Vice-President, Mr. Vinay Kumar, Managing Director of National Federation of Cooperative Sugar Factories Ltd., distinguished guests, ladies and gentlemen.
I am happy to be here in your midst this afternoon to inaugurate the 52nd Annual Meeting of the General Body of National Federation of Cooperative Sugar Factories Limited, the apex body of cooperative sugar factories in the country.
We are meeting at a time when Indian sugar production is on an upswing from 2010-11 season. The country has produced around 24.30 million tonnes of sugar this sugar year which was more than our annual consumption requirement. In order to ensure that the higher production does not lead to mounting cane price arrears and to keep sugar prices stable, the Government allowed sugar factories to export sugar. The objective was to avoid sugar stock build up and resultant drop in prices leading to cane price arrears and to provide additional liquidity to the sugar factories by capitalizing on the low global sugar balance and the better international prices. Consequently, the domestic retail prices of sugar are currently stable.
Coming to ensuing 2011-12 sugar season, I am aware that there is some difference on preliminary estimates of sugar production and efforts are on to reconcile the figures. In any case, it is projected that sugar production in the next season will be more than our consumption needs. The excess production can depress prices. Therefore, I can understand your concern. We are also equally concerned. Keeping in view the estimated opening sugar stocks and the estimated domestic production and consumption in 2011-12 season, the Government will take appropriate steps to maintain price stability so as to ensure that sugar factories make fair realization and pay remunerative cane price to sugarcane farmers and sugar prices remain at reasonable levels.
I would like to remind you that the Central Government has already taken certain long term policy measures with a view to reduce fluctuations in production of sugar. The concept of Statutory Minimum Price (SMP) has been replaced by the Fair and Remunerative Price (FRP) of sugarcane with effect from 2009-10 season. The FRP provides for upfront payment of margins on account of profit and risk to sugarcane farmers, which was not available under SMP. Further, the Government has allowed sugar factories to produce ethanol directly from sugarcane juice. I am hopeful that these measures should help in reducing the cyclicality in sugar production in coming years.
Mr. Patel had mentioned in his speech that the issue of de-control of sugar has been hanging fire since long and that this is the opportune time to decontrol. You know that decontrol of sugar involves doing away with levy obligation on sugar mills and abolition of release mechanism. As regards levy obligation, I would like to say that it was as high as 65% in seventies which has been reduced to 10% in phases. Further, supply of levy sugar has been restricted to BPL families in the country except in north-eastern states, hill states and island territories where universal coverage has been allowed on account of difficult terrain and other logistics constrains. The Government is committed to supply sugar to poor sections of the society at concessional rate. As such, there has to be some alternate mechanism of supplying sugar to poor families if levy obligation is to be done away with. It needs consultation with State Governments in order to evolve consensus in the matter. With regard to release mechanism, I would say that this system has been continuing to ensure availability of sugar throughout the year at reasonable prices. It has to be remembered that 5 – 6 months sugar production has to be utilized for the entire year. There has to be some alternate mechanism to ensure availability of sugar throughout the year at reasonable prices if the present system is to be dispensed with. I request apex bodies of sugar industry to give suitable suggestions to the Government in this regard. The Government is not averse to decontrol of sugar provided the alternate system is acceptable to all stakeholders. I have requested the Prime Minister to request Dr. C. Rangarajan to look at the issues relating to de-regulation of the sugar sector so that the long standing demand of the industry is examined in a non-partisan manner.
In respect of stockholding limit on sugar traders, I would like to inform you that stockholding and turnover limits have been imposed to check unscrupulous traders to hoard sugar and increase sugar prices by creating artificial scarcity in the market. These limits have recently been reviewed by the Empowered Group of Ministers and it has been decided to extend it up to November, 2011 in view of the ensuing festival and .marriage season when the demand for sugar will be at peak. I hope that sugar prices will remain at reasonable level during these months and there may not be any need to extend the limits beyond November. The stock limits on bulk consumers already stands abolished from 14th August, 2011.
Regarding increasing the radial distance between an existing and new sugar factories, the State Governments have already been authorized to increase it beyond 15 kms with approval of the Central Government. The State Governments of Punjab & Haryana have already been permitted to increase the minimum radial distance to 25 kms in their respective states. If we receive requests from other states, we will consider them also.
My attention has been drawn to the so called ‘injustice’ meted out to negative networth sugar factories with regard to SDF loans. You would appreciate that defaults against loans from the Sugar Development Fund is over Rs. 400 crores in respect of cooperative sugar factories alone. It would be difficult for the Government to put more money unless some concrete steps are taken to improve the management of these mills such that the lenders’ money is made more secure.
I would like to take this opportunity to appreciate the Federation for the promotional work they are doing for the sugarcane farmers. My congratulations to their consultancy team for bagging projects abroad.
I am also very glad that NFCSF is making all efforts to improve the productivity of sugarcane and sugar recovery. At present the yield of sugarcane per hectare varies quite substantially from region to region. There is enormous scope of increasing productivity of sugarcane per hectare. What is required is to make varietal changes looking at agro-climatic factors of each region.
In the end, I would like to congratulate all the factories which are getting efficiency awards this year. I hope that this will motivate the recipient of the awards to improve further their performance and other factories to make all out efforts to get the awards in the coming year. With these words, I inaugurate the 52nd annual meeting of the National Federation of Cooperative Sugar Factories.
Inaugural Address of Prof. K.V. Thomas, Union Minister for Consumer Affairs, Food & Public Distribution at the inaugural function of the 52nd Annual Meeting of National Federation of Cooperative Sugar Factories Limited on 27th September, 20011 at New Delhi.
Shri Jayantilal B. Patel, President, Mr. Shankarrao G. Kolhe, Vice-President, Mr. Vinay Kumar, Managing Director of National Federation of Cooperative Sugar Factories Ltd., distinguished guests, ladies and gentlemen.
I am happy to be here in your midst this afternoon to inaugurate the 52nd Annual Meeting of the General Body of National Federation of Cooperative Sugar Factories Limited, the apex body of cooperative sugar factories in the country.
We are meeting at a time when Indian sugar production is on an upswing from 2010-11 season. The country has produced around 24.30 million tonnes of sugar this sugar year which was more than our annual consumption requirement. In order to ensure that the higher production does not lead to mounting cane price arrears and to keep sugar prices stable, the Government allowed sugar factories to export sugar. The objective was to avoid sugar stock build up and resultant drop in prices leading to cane price arrears and to provide additional liquidity to the sugar factories by capitalizing on the low global sugar balance and the better international prices. Consequently, the domestic retail prices of sugar are currently stable.
Coming to ensuing 2011-12 sugar season, I am aware that there is some difference on preliminary estimates of sugar production and efforts are on to reconcile the figures. In any case, it is projected that sugar production in the next season will be more than our consumption needs. The excess production can depress prices. Therefore, I can understand your concern. We are also equally concerned. Keeping in view the estimated opening sugar stocks and the estimated domestic production and consumption in 2011-12 season, the Government will take appropriate steps to maintain price stability so as to ensure that sugar factories make fair realization and pay remunerative cane price to sugarcane farmers and sugar prices remain at reasonable levels.
I would like to remind you that the Central Government has already taken certain long term policy measures with a view to reduce fluctuations in production of sugar. The concept of Statutory Minimum Price (SMP) has been replaced by the Fair and Remunerative Price (FRP) of sugarcane with effect from 2009-10 season. The FRP provides for upfront payment of margins on account of profit and risk to sugarcane farmers, which was not available under SMP. Further, the Government has allowed sugar factories to produce ethanol directly from sugarcane juice. I am hopeful that these measures should help in reducing the cyclicality in sugar production in coming years
Mr. Patel had mentioned in his speech that the issue of de-control of sugar has been hanging fire since long and that this is the opportune time to decontrol. You know that decontrol of sugar involves doing away with levy obligation on sugar mills and abolition of release mechanism. As regards levy obligation, I would like to say that it was as high as 65% in seventies which has been reduced to 10% in phases. Further, supply of levy sugar has been restricted to BPL families in the country except in north-eastern states, hill states and island territories where universal coverage has been allowed on account of difficult terrain and other logistics constrains. The Government is committed to supply sugar to poor sections of the society at concessional rate. As such, there has to be some alternate mechanism of supplying sugar to poor families if levy obligation is to be done away with. It needs consultation with State Governments in order to evolve consensus in the matter. With regard to release mechanism, I would say that this system has been continuing to ensure availability of sugar throughout the year at reasonable prices. It has to be remembered that 5 – 6 months sugar production has to be utilized for the entire year. There has to be some alternate mechanism to ensure availability of sugar throughout the year at reasonable prices if the present system is to be dispensed with. I request apex bodies of sugar industry to give suitable suggestions to the Government in this regard. The Government is not averse to decontrol of sugar provided the alternate system is acceptable to all stakeholders. I have requested the Prime Minister to request Dr. C. Rangarajan to look at the issues relating to de-regulation of the sugar sector so that the long standing demand of the industry is examined in a non-partisan manner.
In respect of stockholding limit on sugar traders, I would like to inform you that stockholding and turnover limits have been imposed to check unscrupulous traders to hoard sugar and increase sugar prices by creating artificial scarcity in the market. These limits have recently been reviewed by the Empowered Group of Ministers and it has been decided to extend it up to November, 2011 in view of the ensuing festival and .marriage season when the demand for sugar will be at peak. I hope that sugar prices will remain at reasonable level during these months and there may not be any need to extend the limits beyond November. The stock limits on bulk consumers already stands abolished from 14th August, 2011.
Regarding increasing the radial distance between an existing and new sugar factories, the State Governments have already been authorized to increase it beyond 15 kms with approval of the Central Government. The State Governments of Punjab & Haryana have already been permitted to increase the minimum radial distance to 25 kms in their respective states. If we receive requests from other states, we will consider them also.
My attention has been drawn to the so called ‘injustice’ meted out to negative networth sugar factories with regard to SDF loans. You would appreciate that defaults against loans from the Sugar Development Fund is over Rs. 400 crores in respect of cooperative sugar factories alone. It would be difficult for the Government to put more money unless some concrete steps are taken to improve the management of these mills such that the lenders’ money is made more secure.
I would like to take this opportunity to appreciate the Federation for the promotional work they are doing for the sugarcane farmers. My congratulations to their consultancy team for bagging projects abroad.
I am also very glad that NFCSF is making all efforts to improve the productivity of sugarcane and sugar recovery. At present the yield of sugarcane per hectare varies quite substantially from region to region. There is enormous scope of increasing productivity of sugarcane per hectare. What is required is to make varietal changes looking at agro-climatic factors of each region.
In the end, I would like to congratulate all the factories which are getting efficiency awards this year. I hope that this will motivate the recipient of the awards to improve further their performance and other factories to make all out efforts to get the awards in the coming year. With these words, I inaugurate the 52nd annual meeting of the National Federation of Cooperative Sugar Factories.
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Shri Jayantilal B. Patel, President, Mr. Shankarrao G. Kolhe, Vice-President, Mr. Vinay Kumar, Managing Director of National Federation of Cooperative Sugar Factories Ltd., distinguished guests, ladies and gentlemen.
I am happy to be here in your midst this afternoon to inaugurate the 52nd Annual Meeting of the General Body of National Federation of Cooperative Sugar Factories Limited, the apex body of cooperative sugar factories in the country.
We are meeting at a time when Indian sugar production is on an upswing from 2010-11 season. The country has produced around 24.30 million tonnes of sugar this sugar year which was more than our annual consumption requirement. In order to ensure that the higher production does not lead to mounting cane price arrears and to keep sugar prices stable, the Government allowed sugar factories to export sugar. The objective was to avoid sugar stock build up and resultant drop in prices leading to cane price arrears and to provide additional liquidity to the sugar factories by capitalizing on the low global sugar balance and the better international prices. Consequently, the domestic retail prices of sugar are currently stable.
Coming to ensuing 2011-12 sugar season, I am aware that there is some difference on preliminary estimates of sugar production and efforts are on to reconcile the figures. In any case, it is projected that sugar production in the next season will be more than our consumption needs. The excess production can depress prices. Therefore, I can understand your concern. We are also equally concerned. Keeping in view the estimated opening sugar stocks and the estimated domestic production and consumption in 2011-12 season, the Government will take appropriate steps to maintain price stability so as to ensure that sugar factories make fair realization and pay remunerative cane price to sugarcane farmers and sugar prices remain at reasonable levels.
I would like to remind you that the Central Government has already taken certain long term policy measures with a view to reduce fluctuations in production of sugar. The concept of Statutory Minimum Price (SMP) has been replaced by the Fair and Remunerative Price (FRP) of sugarcane with effect from 2009-10 season. The FRP provides for upfront payment of margins on account of profit and risk to sugarcane farmers, which was not available under SMP. Further, the Government has allowed sugar factories to produce ethanol directly from sugarcane juice. I am hopeful that these measures should help in reducing the cyclicality in sugar production in coming years.
Mr. Patel had mentioned in his speech that the issue of de-control of sugar has been hanging fire since long and that this is the opportune time to decontrol. You know that decontrol of sugar involves doing away with levy obligation on sugar mills and abolition of release mechanism. As regards levy obligation, I would like to say that it was as high as 65% in seventies which has been reduced to 10% in phases. Further, supply of levy sugar has been restricted to BPL families in the country except in north-eastern states, hill states and island territories where universal coverage has been allowed on account of difficult terrain and other logistics constrains. The Government is committed to supply sugar to poor sections of the society at concessional rate. As such, there has to be some alternate mechanism of supplying sugar to poor families if levy obligation is to be done away with. It needs consultation with State Governments in order to evolve consensus in the matter. With regard to release mechanism, I would say that this system has been continuing to ensure availability of sugar throughout the year at reasonable prices. It has to be remembered that 5 – 6 months sugar production has to be utilized for the entire year. There has to be some alternate mechanism to ensure availability of sugar throughout the year at reasonable prices if the present system is to be dispensed with. I request apex bodies of sugar industry to give suitable suggestions to the Government in this regard. The Government is not averse to decontrol of sugar provided the alternate system is acceptable to all stakeholders. I have requested the Prime Minister to request Dr. C. Rangarajan to look at the issues relating to de-regulation of the sugar sector so that the long standing demand of the industry is examined in a non-partisan manner.
In respect of stockholding limit on sugar traders, I would like to inform you that stockholding and turnover limits have been imposed to check unscrupulous traders to hoard sugar and increase sugar prices by creating artificial scarcity in the market. These limits have recently been reviewed by the Empowered Group of Ministers and it has been decided to extend it up to November, 2011 in view of the ensuing festival and .marriage season when the demand for sugar will be at peak. I hope that sugar prices will remain at reasonable level during these months and there may not be any need to extend the limits beyond November. The stock limits on bulk consumers already stands abolished from 14th August, 2011.
Regarding increasing the radial distance between an existing and new sugar factories, the State Governments have already been authorized to increase it beyond 15 kms with approval of the Central Government. The State Governments of Punjab & Haryana have already been permitted to increase the minimum radial distance to 25 kms in their respective states. If we receive requests from other states, we will consider them also.
My attention has been drawn to the so called ‘injustice’ meted out to negative networth sugar factories with regard to SDF loans. You would appreciate that defaults against loans from the Sugar Development Fund is over Rs. 400 crores in respect of cooperative sugar factories alone. It would be difficult for the Government to put more money unless some concrete steps are taken to improve the management of these mills such that the lenders’ money is made more secure.
I would like to take this opportunity to appreciate the Federation for the promotional work they are doing for the sugarcane farmers. My congratulations to their consultancy team for bagging projects abroad.
I am also very glad that NFCSF is making all efforts to improve the productivity of sugarcane and sugar recovery. At present the yield of sugarcane per hectare varies quite substantially from region to region. There is enormous scope of increasing productivity of sugarcane per hectare. What is required is to make varietal changes looking at agro-climatic factors of each region.
In the end, I would like to congratulate all the factories which are getting efficiency awards this year. I hope that this will motivate the recipient of the awards to improve further their performance and other factories to make all out efforts to get the awards in the coming year. With these words, I inaugurate the 52nd annual meeting of the National Federation of Cooperative Sugar Factories.
Inaugural Address of Prof. K.V. Thomas, Union Minister for Consumer Affairs, Food & Public Distribution at the inaugural function of the 52nd Annual Meeting of National Federation of Cooperative Sugar Factories Limited on 27th September, 20011 at New Delhi.
Shri Jayantilal B. Patel, President, Mr. Shankarrao G. Kolhe, Vice-President, Mr. Vinay Kumar, Managing Director of National Federation of Cooperative Sugar Factories Ltd., distinguished guests, ladies and gentlemen.
I am happy to be here in your midst this afternoon to inaugurate the 52nd Annual Meeting of the General Body of National Federation of Cooperative Sugar Factories Limited, the apex body of cooperative sugar factories in the country.
We are meeting at a time when Indian sugar production is on an upswing from 2010-11 season. The country has produced around 24.30 million tonnes of sugar this sugar year which was more than our annual consumption requirement. In order to ensure that the higher production does not lead to mounting cane price arrears and to keep sugar prices stable, the Government allowed sugar factories to export sugar. The objective was to avoid sugar stock build up and resultant drop in prices leading to cane price arrears and to provide additional liquidity to the sugar factories by capitalizing on the low global sugar balance and the better international prices. Consequently, the domestic retail prices of sugar are currently stable.
Coming to ensuing 2011-12 sugar season, I am aware that there is some difference on preliminary estimates of sugar production and efforts are on to reconcile the figures. In any case, it is projected that sugar production in the next season will be more than our consumption needs. The excess production can depress prices. Therefore, I can understand your concern. We are also equally concerned. Keeping in view the estimated opening sugar stocks and the estimated domestic production and consumption in 2011-12 season, the Government will take appropriate steps to maintain price stability so as to ensure that sugar factories make fair realization and pay remunerative cane price to sugarcane farmers and sugar prices remain at reasonable levels.
I would like to remind you that the Central Government has already taken certain long term policy measures with a view to reduce fluctuations in production of sugar. The concept of Statutory Minimum Price (SMP) has been replaced by the Fair and Remunerative Price (FRP) of sugarcane with effect from 2009-10 season. The FRP provides for upfront payment of margins on account of profit and risk to sugarcane farmers, which was not available under SMP. Further, the Government has allowed sugar factories to produce ethanol directly from sugarcane juice. I am hopeful that these measures should help in reducing the cyclicality in sugar production in coming years
Mr. Patel had mentioned in his speech that the issue of de-control of sugar has been hanging fire since long and that this is the opportune time to decontrol. You know that decontrol of sugar involves doing away with levy obligation on sugar mills and abolition of release mechanism. As regards levy obligation, I would like to say that it was as high as 65% in seventies which has been reduced to 10% in phases. Further, supply of levy sugar has been restricted to BPL families in the country except in north-eastern states, hill states and island territories where universal coverage has been allowed on account of difficult terrain and other logistics constrains. The Government is committed to supply sugar to poor sections of the society at concessional rate. As such, there has to be some alternate mechanism of supplying sugar to poor families if levy obligation is to be done away with. It needs consultation with State Governments in order to evolve consensus in the matter. With regard to release mechanism, I would say that this system has been continuing to ensure availability of sugar throughout the year at reasonable prices. It has to be remembered that 5 – 6 months sugar production has to be utilized for the entire year. There has to be some alternate mechanism to ensure availability of sugar throughout the year at reasonable prices if the present system is to be dispensed with. I request apex bodies of sugar industry to give suitable suggestions to the Government in this regard. The Government is not averse to decontrol of sugar provided the alternate system is acceptable to all stakeholders. I have requested the Prime Minister to request Dr. C. Rangarajan to look at the issues relating to de-regulation of the sugar sector so that the long standing demand of the industry is examined in a non-partisan manner.
In respect of stockholding limit on sugar traders, I would like to inform you that stockholding and turnover limits have been imposed to check unscrupulous traders to hoard sugar and increase sugar prices by creating artificial scarcity in the market. These limits have recently been reviewed by the Empowered Group of Ministers and it has been decided to extend it up to November, 2011 in view of the ensuing festival and .marriage season when the demand for sugar will be at peak. I hope that sugar prices will remain at reasonable level during these months and there may not be any need to extend the limits beyond November. The stock limits on bulk consumers already stands abolished from 14th August, 2011.
Regarding increasing the radial distance between an existing and new sugar factories, the State Governments have already been authorized to increase it beyond 15 kms with approval of the Central Government. The State Governments of Punjab & Haryana have already been permitted to increase the minimum radial distance to 25 kms in their respective states. If we receive requests from other states, we will consider them also.
My attention has been drawn to the so called ‘injustice’ meted out to negative networth sugar factories with regard to SDF loans. You would appreciate that defaults against loans from the Sugar Development Fund is over Rs. 400 crores in respect of cooperative sugar factories alone. It would be difficult for the Government to put more money unless some concrete steps are taken to improve the management of these mills such that the lenders’ money is made more secure.
I would like to take this opportunity to appreciate the Federation for the promotional work they are doing for the sugarcane farmers. My congratulations to their consultancy team for bagging projects abroad.
I am also very glad that NFCSF is making all efforts to improve the productivity of sugarcane and sugar recovery. At present the yield of sugarcane per hectare varies quite substantially from region to region. There is enormous scope of increasing productivity of sugarcane per hectare. What is required is to make varietal changes looking at agro-climatic factors of each region.
In the end, I would like to congratulate all the factories which are getting efficiency awards this year. I hope that this will motivate the recipient of the awards to improve further their performance and other factories to make all out efforts to get the awards in the coming year. With these words, I inaugurate the 52nd annual meeting of the National Federation of Cooperative Sugar Factories.
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