The impasse between the sugar mill owners and the state Government over cane price continues as the much-hyped meeting held on Wednesday ended with any result with the private millers asking Government to take over their mills to see how difficult it was to run these mills at present circumstances.
A Government source told The Pioneer that private millers told the Government that at present rate it was not possible for them to run the mills. They even said that Government was free to take over mills and run it for one year the official said adding that private millers have said that the Government was free to keep profit with it.
The cane price has generated much heat in Uttar Pradesh after private millers refused to start crushing at the existing price of Rs 280 per quintal for the general variety. Chief Minister Akhilesh Yadav had asked the millers to start operation by November 25 still the mills have refused to start crushing.
The private millers say that at the State Advisory Price of Rs.280 for general varieties, the cane price arrears of sugar mills had touched Rs.7800 crore in March/April 2013 in the previous season. The average sugar price realisation in last season was Rs.3150 in UP which at present is Rs.2900-2950, a major drop in the cane paying capacity of the sugar mills.
With an additional unpaid cane price arrears of Rs.2400 crore from 2012-13 to be cleared next year and the lower paying capacity now, the announcement of a similar unviable cane price as last year will only lead to cane price arrears to cross Rs.12000-13000 crore in March-April 2014, the millers said.
This SAP is unviable and much beyond the paying capacity of the mills of UP of Rs.225 per quintal. “At these prices, it will be extremely difficult to convince the Banks to extend loans or to ensure that mills start their cane crushing in 2013-14,” Director General Indian Sugar Mills Association Avinash Verma said.
Meanwhile, the Bharatiya Kisan Union has asked the state government to increase the cane price to Rs 300 per quintal. They argue that the neighbouring states of Haryana and Uttarakhand are paying this price. BKU national convener Rakesh Tikait met Chief Minister and demanding better rpice for farmers.