The federation, at its general body meeting held on Wednesday, expressed its inability to release fee sugar on account of import of more than 22 lakh tonnes in the country, lack of announcement of revised levy sugar price by the Centre and opening sugar stock of 70 lakh tonnes in the state.

The federation's decision is also to protest against the ruling Shiv Sena-BJP government's "anti-cooperative" sector policies and alleged harassment of sugar cooperatives.

The federation had released 10,000 tonnes of free sugar last year for the festive season. The government wanted the federation to show a similar gesture this year and a communication was sent by the state food and civil supplies department on September14.

Wednesday's meeting was presided over by the federation president Jayant Patil. The federation's recommendation has come on the eve of a meeting convened by the state cooperative minister Divakar Raote on Thursday to take a final decision in this regard. Jayant Patil told The Financial Express that it has also said no to the government's proposal to pay Rs 5 per quintal by the financially sound sugar cooperatives towards the creation of rehabilitation fund for sick and closed sugar factories in the state. The federation said the government had failed to take necessary steps in the actual creation of such fund despite decision taken in this regard in the past. The federation has also turned down the state government's recommendation for the payment of Rs 560 per tonne as the minimum statutory price for the 1999-2000 season as paid during the last season. Instead, it has strongly demanded that it should be increased to Rs 575 per tonne. The federation has also rejected the state government'sproposal for the payment of Rs 2 per tonne for the setting up of a sugar complex fund.

However, the federation has said it should not be more than Re 1 per ton. On the beginning of crushing season, the federation has said though it generally kicks off on November 1, the sugar cooperatives having excess sugarcane in their jurisdiction can advance it. According to the federation, a record 609 lakh tonnes of sugar would be available for crushing.