Karnataka - Bidar   

Revoke ban on sugar exports, Centre urged

Staff Correspondent

BSSK chief says sugar factories are incurring heavy losses

Bidar: The cooperative sugar factories in the district have appealed to the Centre to allow sugar exports to help them overcome losses.

Bidar Sahakari Sakkare Karakhane (BSSK) president Ishwar Khandre told presspersons here on Monday that the ban on export had pushed down prices of sugar. The price of sugar had slipped from Rs. 1,750 a quintal last year to Rs. 1,450 now. But the cost of production worked out to Rs. 1,650 per quintal. This meant a factory that produced 4 lakh quintals of sugar would suffer a loss of Rs. 8 crore to Rs. 10 crore in a year.

Cut in tax

He urged the State Government to withdraw the purchase tax to reduce the losses of cooperative sugar factories. The State Government should pay the cooperative sugar units an incentive of Rs. 2 per kg of sugar produced. The burden on the State Government would be about Rs. 600 crore. This was just a fraction of Rs. 4,000 crore that the Government collected by way of excise duties on sugar.

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