Maharashtra?s crisis-ridden sugar industry is worried about a problem of plenty, as it expects a record production of 91 lakh tonne in the ongoing crushing season. This is equivalent to last year?s production.

The sugar industry expects crushing to be done till June. Crushing was delayed last year because of extended monsoon. So, the industry has been cautious this time.

Nearly 172 sugar factories– 23 of them private units?are busy crushing sugarcane this season. Officials at the state federation of cooperative sugar factories told FE. ??So far 88 lakh tonne sugar has been produced and it is estimated that by the end of the prolonged crushing season, the state will have a sugar production of 91 lakh tonne. It is expected that the sugar industry will be able to export 20 lakh tonne, which includes both raw and white sugar against the total target of 30 lakh tonne. This sugar was produced in last year?s crushing season.?

Besides, the sugar industry claims that it would have to face hardship after the Centre creates a buffer stock of 50 lakh tonne at the national level.

Sources said there is also an increase in recovery to more than 9%, which is factored in while fixing the minimum support price. A large number of sugar co-operatives enjoys a recovery rate of over 12% and in some cases it has crossed 13%.

The Congress-led government in Maharashtra, in a bid to keep the politically influential co-operatives happy ahead of next year?s assembly elections, has announced a slew of sops. Sugar units, which have their crushing season extended beyond 160 days, would be entitled to a grant if the recovery rate falls. For every 1% fall, the cooperatives would get grant of Rs 130 a quintal. Besides, sugar units would be given a sugar transportation grant of Rs 2 per tonne. The government would give counter-guarantee to 25 units that have received medium-term loan based on excise duty under a central government scheme.

Moreover, if sugar units are unable to complete crushing in the prolonged season, they would get an assistance of Rs 25,000 per hectare. However, if sugar units use the uncrushed sugarcane during the crushing season of 2008-09, they would have to repay the grant to the government.