COMPANIES

February 8, 1969 Exporters want Government to set apart a portion of the revenue accruing from the export duty on Deshi cotton for the publicity campaign. But all that COMPANIES BHOPAL SUGAR complains that it incurred a bigger loss during the year to September last because, contrary to its earlier decision, it was obliged to start its factory under "pressure" and "certain assurances" from the MP Government. The State Government promised that it would "compel" the cultivators to deliver at least two- thirds of their cane to the factory, but though the company offered Rs 10 against Rs 7.37 per quintal fixed by the Unions Government, it failed to get the cane. The order under the MP Sugarcane Acts was issued only at the fag end of the season and, with cane continuing to be diverted to the gur manufacturers, the company could crush only 9,779 tonnes of cane against 20,994 tonnes in the year before. This quantity, which should have normally taken 9-10 days to crush, required double that time because of the intermittent and irregular supply of cane, Moreover, the average recovery fell from 8.82 to 8.20 per cent. The State Government had also promised remission of purchase tax on cane and a relief on octroi which had been doubled to 10 p. But no notification has been made yet, though the matter is said to be "under active consideration". BSI has a grouse against the Union Government too. Although the cane price was raised by Rs 1.69 per quintal, the levy price of sugar was reduced by Rs 2.41 from December 8, 1967, and by another Rs 13.85 to Rs 155.65 from the beginning of August 1968. The company had demanded a price of Rs 215, as worked out by the Association. Secondly, MP was included in Zone III with Punjab, Haryana and West UP. But MP has the disadvantages of low recovery and short duration of cane-crushing period compared to the other States with which it is bracketed. It has represented to the Tariff Commission that, as before, a separate zone of MP should be reconstituted. With the failure of the monsoon for three successive years, moreover, the irrigation tanks did not contain adequate water. The irrigation department did not undertake to supply water for the cane crop. Con- Government is willing to do is to release the necessary foreign exchange for the campaign, the expenditure being incurred by the exporters themselves.