Inaugural Address of Prof. K.V. Thomas, Union Minister for Consumer
Affairs, Food & Public Distribution at the inaugural function of the 53rd Annual Meeting of National Federation of
Cooperative Sugar Factories Limited dated 19.12.12
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1.
Shri
Jayantilal B. Patel, President, Shri Shankarrao G. Kolhe, Vice-President,
Leaders of Co-operative sector, Shri Vinay Kumar, Managing Director of National
Federation of Cooperative Sugar Factories Ltd., Shri Sudhir Kumar, Secretary,
Food and Public Distribution, Government of India, Officers from the Ministry
of Consumer Affairs, Food & PD, my friends from the Media, distinguished guests, ladies and gentlemen.
2.
I am
happy to be here in your midst this afternoon to inaugurate the 53rd Annual Meeting of the General Body of
National Federation of Cooperative Sugar Factories Limited. We are meeting at a time when Indian sugar
production continues to surpass the domestic requirement. The country has produced over 26 million
tonnes of sugar in the last season and as per Shri Jayantilal B. Patel, there
would be a further production of 24.5 million tonnes this year. Though happy to
hear such a happy news, at this early
stage of the sugar season, I may like to be a little cautious and hope that
Shri Patel is proved correct.
3.
The
supply of sugar during the last season was uninterrupted and at largely stable
prices. This enabled the Government to
take certain decisions which gave a certain amount of freedom to the industry
to enable them to plan their cash flows and clear cane price arrears.
4.
Shri
Jayanti Bhai Patel has already spoken in detail about the recommendations
of Dr Rangarajan Committee and let me
assure that the Department of Food and Public Distribution has already
initiated action on the report of the committee. The feasibility and the time frame of
implementing the various recommendations are under deliberation and I am sure
that a considered decision would soon be taken on some of these issues.
5.
The
Ethanol Blending Programme has been reiterated
by the Government and I am sure that this will help the sugar industry
improve the financials and its
commitment to make timely payment to the cane farmers. The Department of Food
and Public Distribution has already made a request to the Petroleum Ministry to
take quick decision regarding notification of mandatory blending of ethanol
with petrol. In view of the good
production in last sugar season the Government had permitted exports of sugar
under OGL. This, along with the
firming up of sugar prices have helped
clear the cane price arrears. You will however, appreciate that globally sugar prices are facing a slump and
the challenge lies in improved technical efficiency to provide the consumer
with globally competitive prices. A demand has been made for an increase in the
import duty of white and raw sugar. My Department has already taken up the
issue with the Ministry of Finance. However, protection to the industry is seen
to be leading to higher consumer prices and at a time when international prices
are low, burdening the consumer with a higher liability on such an essential commodity is bound to
raise questions. It is in this context that I would urge you to take necessary
steps for increasing cane productivity and look at varietal change which will
result in better prices for the consumer without harming the farmer.
6.
I
have noted your concern regarding the delay in the notification of levy sugar
prices for the year 2012-13. I have
directed the Department of Food and Public Distribution to expedite the
notification and ensure that the mills do not suffer on this account.
Notification regarding the decision of carry forward of levy sugar will also be
issued soon.
7.
I
appreciate your concern on demand being
raised by the Income Tax Department. However, you would realize that the issue
entails examination by the Department of Revenue and has implications far
beyond the cooperative sector. I am sure your suggestion would be examined by
the CBDT as per the provisions of law and genuine hardships faced by certain
mills and the farmers attached to them would be looked into.
8.
I am
glad to know that the sugar industry, specially in the cooperative sector, is
committed to the development of renewable energy through bagasse based
generation of power. The department is
committed to improving the viability of sugar mills through favourable
assistance from the Sugar Development Fund. While appreciating your demand for
considering negative network factories for funding from the SDF, let me make it
clear that the viability of the sugar mills resulting their capacity to repay
the loan, which are public funds, need to be considered. It is painful to note
that over Rs.500 crores SDF loan is outstanding against sugar mills in the
cooperative sector. You would appreciate that this is the money which could
have been used for further development of your fellow sugar undertakings. The need of the hour is better management of
the sugar undertakings in the cooperative sector with cooperation of the sugarcane farmers assured.
9.
I
must congratulate the National Federation of Cooperative Sugar factories for
its yeoman’s service in the development of industry but the task remains far
from finished. There is a need to further professionalize the organization in
the background of technological changes taking place in the industry. Readiness
for accepting changes and adopting measures such as satellite mapping need to
be encouraged. I would ask for more outputs from the
research and development centre of the NFCSF and this would be a fitting
tribute to the industry in the international year of cooperatives.
10.
The
Government is committed to play a facilitating role in the development of the
sugar industry and have taken certain measures to enable you to perform better. Efficiency awards are
being given out to the performers and I congratulate the factories which have
made efforts to stay ahead of the field in their search of excellence. Excellence is more relative than absolute and there is
definitely further scope for improvement
in this sector. I am sure that you will attempt
even more in ensuring a vibrant sugar industry and the Government will
do everything to support the industry reach its pinnacle.
Thank you !
Jai Hind.
