Government to face drop in GST from sugar production

Government to face drop in GST from sugar production

PUNE: Drought and then excess rainfall have given a huge blow to sugar production in the State as production was expected to be reduced for the year 2019-2020. 

Drought in areas like Solapur, Marathwada and floods in Kolhapur and Sangli resulted in lower production. 

This year, total sugarcane area of 8.21 lakh hectares was available for crushing season in the State, which will produce only 54 lakh metric tonnes of sugar. This year, the government will receive GST of Rs 8.35 crore less compared to last year, stated the sugar commissionerate office.

According to the sugar commissionerate office, there was a major reduction of areas under sugarcane in Marathawada, Solapur, Kolhapur and Sangli. 

There was almost 50 per cent reduction in Marathawada as last year it was 1.42 lakh hectares while this year, only 81,642 hectares was under sugar cultivation. In Solapur, 68,000 hectares were less compared to last year. 

Last year, almost 1.95 lakh hectares was under sugarcane while this year only 1.27 lakh hectares was under sugarcane.

In Solapur, Sangli, Kolhapur and Nagar districts, the sugarcane production areas have reduced by 60 per cent though it has the highest number of sugar factories. 

Last year, the government got Rs 1,740 crore GST from the sugar industry. This year due to flood and drought in major sugarcane producing areas, there will be a significant reduction in GST.

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