ADDRESS OF
HON'BLE MINISTER
FOR CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION FOR 78TH ANNUAL GENERAL MEETING OF THE INDIAN SUGAR MILLS ASSOCIATION (ISMA) ON 13th DECEMBER, 2012 AT NEW DELHI.
1.
Shri
Gautam Goel, President ISMA, Shri
Sreenivasan, Vice President ISMA, Shri Abinash Verma, DG ISMA, Officers from the Ministry of Consumer
Affairs, Food and Public Distribution, distinguished guests, my friends from
the Media, Ladies and Gentlemen !
2.
It has
been one year since I addressed this august gathering and at that time I had
made certain requests to the industry and had also promised to look into
certain issues. I stand here with satisfaction that the promises made have been
fulfilled to a large extent. I must also congratulate the industry that it has
acted on the requests and ensured a
stable supply of sugar at almost stable prices during the past one year.
3.
I had
expected further requests from the industry in the address by the President,
ISMA but I am relieved that the sugar sector has no major requests which
implies that the Government policies and decisions have been accepted by
industry as having met the requirements of the time. I can understand that
there is anticipation in the industry regarding Government’s action on the
recommendations of Dr. Rangarajan Committee on de-regulation of the sugar
sector. I can assure you that the Department of Food and Public Distribution
has initiated action on the report of
the Committee and is in the process of completing consultations with the State Governments
and other Departments. You will appreciate that
the decisions have to be well considered and in the long term interests
of all stake holders. I would therefore, request you to have patience in this regard.
4.
The last
one year has brought the sugar industry in India on the international stage.
The ISO conference held in April 2012 at New Delhi was another feather in our
cap and the success of the conference was a tribute to the efforts put in by
the sugar industry. The international conference held under the aegis of the
Sugar Technologists Association of India (STAI) at Hyderabad also underscores
the rising importance of the Indian sugar industry as regards sugar technology.
5.
The
reiteration of the Government of its commitment to Ethanol Blending Programme
will in no small measure boost the prospects of better utilization of
by-products in the manufacture of sugar and I hope that the industry is able to
take advantage of this step to improve its bottom-lines. While doing so, I
would call upon you to ensure timely cane payments to the sugar farmers so that
the cane arrears which we have assiduously worked to reduce and keep within
controllable limits, are not allowed to go beyond permissible limits.
6.
Sugar
prices have firmed up since July 2012 and this should help the industry in
meetings its commitment towards the cane farmers. I understand that sugar prices are bearish internationally and this trend is likely to continue for some time. This will, no doubt, put the industry under pressure in India, but I am sure that you will face this challenge as skillfully as you had handled the surplus production in the last two sugar seasons. I would urge you to consider improvements in technical efficiency to reduce conversion cost in a bid to compete globally.
7.
The current sugar season and the one following
will be a real test of character for the sugar industry. The sudden drop
in expected rainfall in two major sugar producing States has definitely had its
impact on the likely sugar production during the current season. Perhaps it is a blessing in disguise at a time of global surplus. The weather pattern of last few years holds a challenge to the industry as, even within overall normal level of rainfall, long period of dryness have been experienced. The water expended in growing sugarcane as compared to alternate crops has also been commented upon by responsible quarters. It is imperative that industry
should focus on development of draught resistant varieties and agricultural
practices to conserve water like drip irrigation.
8.
With the
implementation of the Food Safety and Standards Act, certain regulations to packing and labeling
have been passed on to the Food Safety
and Standards Authority of India. I am sure that ISMA, as the industry body is advising its members on the
compliance with the new norms and ensuring that the quality standard in the
sugar industry are improving to meet international standards.
9.
I have
noted your concerns regarding certain
changes that have been made with regard to the assistance through loans from
the Sugar Development Fund. We have tried to expedite the processing of loan
applications and make it transparent in the best possible manner. I must
confess that there is scope for improvement and I am sure that Department is
looking at this aspect for improving service standards. You must also appreciate that the funds in
the SDF are not unlimited and if a curtailment has been made in the number of
loans, it is only because the same pie has now to be shared by a larger number
of you in the industry. Should the situation of funds improve, or a necessity
arises, we shall definitely look at increasing the number of loans for
modernization and cane development. There are some other issues which have
been raised which are being looked into
within the Department and I expect them to be resolved at an early date.
10.
While on
the issue of the Sugar Development Fund, those who have availed of the
assistance must also accept that responsibility towards timely repayment of
their installments so that the Fund can go on helping the industry. Responsible
people in the industry figure among the cases of defaults and I expect ISMA to
also look into this issue and ensure that their weaker members are not deprived
of assistance because of the recalcitrant behavior of some of their members.
11.
While on
the whole, the last sugar year have been one of great satisfaction for us –
both from the farmers’ point of view as well as the consumers’ point of view, I
have been pained by the action of certain groups within the industry. Government
policy decisions are made to serve the best interest of the maximum number. I
am sure that all decisions do not find favour with all of you and could
possibly lead to some short-term advantage to a few. However, over a period
of time this averages out. The
representations being received from factions within the industry on certain
issues where there is disagreement puts
us in a difficult position. It is in the interests of the industry to resolve
their issues internally and come to a consensus amongst themselves rather than
take their differences into the public domain.
I am sure the elders in the industry will be able to guide the young team
and new office-bearers appropriately to allow the industry to grow in strength.
12.
I
congratulate and compliment the outgoing president Shri Gautam Goel on a very
eventful and satisfying innings. The incoming President, Shri Sreenivasan has to take the task forward and
I wish him all success in this endeavour. My best wishes to ISMA on the
completion of another year of achievements and my assurances on meaningful support to the industry and its
contribution to the growth of the Indian economy.
Jai Hind !
