Maha co-ops to refine raw sugar imported by others

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New Delhi: Cooperative sugar mills in Maharashtra are now ready to process imported raw sugar for others on contract to utilise huge idle capacity as financial constraints obstructed their own overseas buying plan.

The move came amid apprehensions that massive crushing capacity may remain unutilised in the 2009-10 season.

“In the 2008-09 season, ending this month, cooperatives crushed 40 million tonne of sugarcane against the capacity of 75 million tonne. Even in 2009-10, 41 million tonne may be crushed,” Maharashtra State Cooperative Sugar Factories Federation managing director Prakash Naiknavare said.

The concern about idle capacity increased after cooperatives in the state failed to import any sugar due to lack of finance.

According to the model suggested by the federation, such cooperatives would process the raw sugar imported by mills/traders and return 85% of the quantity in the form of white sugar while keeping the rest with them, Naiknavare said.

“No money would be charged for refining. Cooperatives would gain by selling extra sugar after returning refined sugar,” he said, adding that two cooperatives have already entered into such arrangement with some mills.

Asked how much of sugar is likely to be processed under this model, he said only about 2 lakh tonne are expected, as assembly polls in

Maharashtra, due on October 13, are clashing with the cane crushing season.

The crushing of cane is expected to start after Diwali in October and would continue till February-end.

Last week, agriculture minister Sharad Pawar said the country had imported 24 lakh tonne of raw sugar and contracts had been “almost finalised” for the purchase of another 26 lakh tonne.