Sugar Cane industry facing immense problems these days .There is a bigger recession in sugar industry. This recession is from 2006 . (i.e. from last year.) India’s biggest sugar industry facing a problem of bankruptcy. Last year loss of Bajaj Hindustan was 231 Carors in their sugar department. Allahabad high court ordered government to take over the properties of that companies for paying the dues to farmers.
Indian sugar industry has got a variable problems for minimum rate of sugar cane per ton . In Uttar Pradesh the rate is Rs. 1250 , in Maharashtra the rate is Rs. 900 and in Gujrat farmers agreed to take Rs. 500 per ton as their first installment. The Sugar Factory Association of U.P. agreed only on Rs. 760. If they pay more than Rs. 760 they will become bankrupt. This year India will become a largest producer of sugar cane currently number one is Brazil.
What is the solution of this problem? Some Indian petrochemical companies wanted to take a land on lease in Brazil for their Ethanol production. Why this companies are not establishing their plant in India for empowering a local farmers? Currently the rate of crude oil is $90. This will soon go up to $150. In future vehicles will use ethanol as their fuel. In Brazil sugar industry is in much better shape because they are producing sugar cane only for ethanol.
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