The Uttar Pradesh sugar industry, which is already in red, received a body blow with Punjab almost closing its door for sale of sugar from UP by imposing 11 per cent entry tax thus affecting the sale of over 15 lakh tonnes of sugar in Punjab.
"The Punjab Government's decision has adversely affected UP sugar industry. The Government decision of 11 per cent entry tax on sugar from other states was taken to protect its own industry but has affected sugar mills of western UP," Deepak Gupatara (rpt Guptara) of Uttar Pradesh Sugar Mills Association (UPSMA) told The Pioneer here on Monday.
This Punjab Government order comes into affect from June 1. UP is the only state which sells its sugar in Punjab.
Punjab has nine cooperative and the seven private sugar mills which are running in huge losses and have unpaid dues amounting to almost `700 crore after Punjab increased its State Advised Price (SAP) on cane to `295 per quintal.