Mumbai: The Agriculture Ministry is on the mat for allowing sugar exports last year. Today, with a sugar shortage the country is being forced to import. Experts say it's more a policy failure than a scam.
But the fact remains that while the farmers lost out, the big gainers are Maharashtra's sugar barons, including factories controlled by the chief minister and home minister of the state.
For two years, from 2006 to 2008, Maharashtra's sugar belt reaped a bumper crop. As prices crashed, the government cleared exports last year.
Now, sugar production has halved. India is importing sugar, raising questions of a scam. However, Maharashtra's politically powerful sugar co-operatives defend the government.
Prakash Naiknavare, MD of Sakhar Sangh, said, ''We had excess stocks of at least 12 million tonnes. With stocks piling up and the loss of interest, not clearing exports would have been a disaster for the sugar industry as a whole.''
Yet, it's they who gained the most. Maharashtra's sugar cooperatives accounted for half of India's sugar exports along with sugar factories controlled by senior Maharashtra's ministers who exported thousands of tonnes of sugar and made crores.
India's 2008 sugar exports stood at 5.2 million tones, out of which Maharashtra Cooperatives accounted 2.9 million tones.
Bhaurao Chavan Karkhana controlled by Chief Minister Ashok Chavan exported 27,000 tonnes, Rajarambapu Karkhana under Home Minister Jayant Patil's control exported 28,000 tonnes and Warna Karkhana controlled by Horticulture Minister Vinay Kore exported 58,751 tonnes of sugar.
Experts say there may be no scam, but the government needs to be held accountable for policy failures.
But the conflict of interest, where sugar barons are also politicians, blurs the line between a policy failure and a scam.