Friday, June 17, 2022
pratiyogita kiran
pratiyogita kiran Published this article page no 02 Reasons behind Liquidity Crunch at Sugar Mills High sugarcane production due to combination of factors like fixed prices which are well above that of alternative crops domestically controlled prices which are well above international levels of sugar prices and availability of High yield sugarcane varieties. Cane reservation area and bonding with designated mill obligated to purchase from cane farmers within the cane reservation area. o However it reduces the bargaining power of the farmer and Mills lose flexibility in augmenting cane supplies and quality. Minimum radial distance criterion of 15 km between any two sugar mills under the Sugarcane Control Order leading to distortions in the market. Government control over exports and imports of sugar. Steps to overcome Liquidity Crunch National Policy on Biofuels (2018) to have a 20% target blending rate for ethanol by 2030 (now changed to 2025). Tripartite agreement between sugar companies banks and Oil Marketing Companies (OMCs) to ensure ethanol. Export subsidy for sugar to make Indian exports competitive. It is contested by other countries in the WTO and India has been allowed to continue with the subsidies till December 2023. Recommendations of NITI Aayog Task Force under Ramesh Chand Set up to find longterm solutions for the sugar industry and sugarcane farmers it has recommended Adoption of revenue sharing formula Diversification towards less water intensive crops Enhanced ethanol blending Revision in Minimum Selling Price of sugar Redesigning of export incentives to make them WTO compliant Discontinuation of buffer stocks promotion of jaggery etc pratiyogita kiran buy.
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