Centre begins process to form multi-state cooperative society for sugar sector: Muralidhar Mohol
India has begun forming a separate multi-state cooperative society to strengthen cooperative sugar mills and support sustainable growth. The proposed structure aims to improve financial stability, technology adoption and value-added businesses for nearly 300 cooperative sugar factories linked to 5 million sugarcane farmers.
The Central government has started the process of forming a separate multi-state cooperative society aimed at strengthening India’s cooperative sugar sector and supporting sustainable growth in the industry, Union Minister of State for Civil Aviation and Cooperation Muralidhar Mohol said on Wednesday.
Speaking at a meeting organised by the National Cooperative Development Corporation (NCDC) at the Vaikunth Mehta National Institute of Cooperative Management in Pune, Mohol said the new cooperative structure is being planned to improve the financial and operational strength of cooperative sugar factories across the country, Agrowon reported.
The meeting, held on the theme of creating a circular economy in the sugar industry through a multi-state cooperative society, was attended by Joint Secretary in the Ministry of Cooperation Raman Kumar, Indian Potash Limited Managing Director Sanjeev Verma and representatives of cooperative sugar mills from Maharashtra, Karnataka and Gujarat.
Mohol said nearly 300 cooperative sugar factories in the country are linked to around 50 lakh sugarcane farmers and play a major role in supporting the rural economy. However, he said many cooperative mills are currently facing financial, technical and environmental challenges.
According to Mohol, the proposed multi-state cooperative society will help strengthen the circular economy in the sugar industry and support sustainable sugarcane cultivation.
He also highlighted the work carried out by the Ministry of Cooperation since its formation, stating that the ministry has taken 133 decisions in favour of the cooperative sector and initiated computerisation of nearly 70,000 cooperative societies across the country.
Mohol said the cooperative sector is expected to require nearly 17 lakh skilled workers in the future, which led to the establishment of the Tribhuvan Cooperative University.
He added that cooperative institutions in India have received financial support worth nearly Rs 4 lakh crore through the National Cooperative Development Corporation over the past 11 years.
Representatives from cooperative sugar factories welcomed the idea of the new society but also expressed concern over the growing debt burden on sugar mills. They said many factories are forced to borrow funds even to repay interest liabilities and urged the government to prepare realistic policies while designing the new structure.
Responding to the concerns, Mohol assured the participants that suggestions from sugar industry representatives would be considered during the formation of the society.
During the discussions, Raman Kumar said cooperative sugar factories have fallen behind in adopting modern technology and advanced management practices, leading to several operational difficulties in the sector.
He said the Centre is now focusing on helping cooperative sugar factories expand into businesses linked to sugar by-products and other value-added sectors beyond conventional sugar production.
According to Kumar, the proposed multi-state cooperative society will provide financial, technical and business support to sugar factories to help them strengthen operations in these emerging areas.
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Source : ChiniMandi
