The committee, headed by former union home secretary Madhav Godbole, was set up by the state government to review the status of the cooperative sugar industry in the state, with special emphasis on sick sugar mills. It submitted its report to the government on March 9.

The most significant recommendation of the committee is that the state government should neither give share capital for cooperative sugar factories nor be a guarantor for them.

``If private firms can raise their own funds, why should the cooperative sector be dependent on the government for the same,'' Godbole, who addressed a ``sugar conference'' organised by the state government here yesterday, said.

The committee has also suggested that the system of levy sugar be scrapped and zoning system reintroduced.

Late Vitthalrao Vikhe Patilstarted Asia's first cooperative sugar factory at Pravaranagar in Ahmednagar district in 1948 and now there are over 125 such factories in the state.

The percentage of sick sugar mills in the state had gone up from 20 to 40 during the last 10 years, the report said adding that there had been no progress in the rate of sugar productivity.