Upping ante against the Samajwadi Party Government the private sugar mills have declared that they will not crush cane in next season at the prevailing price and demanded that Government of India should intervene in the matter.
In a letter written to Union Secretary, Food and Public Distribution, the Uttar Pradesh Sugar Mills Association said that millers in UP are made to pay Rs 280 per quintal which is very high considering the market situation.
“The UP Mills can pay at the rate of Rs 180 per quintal in the next season and the rest amount , which the millers are forced to pay, should be bridged by the central government,” the association said in its letter released here on Wednesday.
It said that situation is very bad because this is the fifth continuous year of surplus sugar production. It is estimated that sugar stock in 2015-16 would be over 103 lakh ton – the highest ever in the annals of India.
“The UP Government has increased State Advisory Cane Price (SAP) by 100 per cent within a period of seven year. It was Rs 140 per quintal in 2008-09 and now it is Rs 280. On the other hand the price announced by central government is Rs 220,’ it said.
It further added that sugar cane price is totally dependant on revenue realization from sugar. Considering recommendations of different committees the mills can afford to pay just Rs 176.25 per quintal.
“The sugar mills are in no position to start their crushing operation at Rs 280 or Rs 220 per quintal,” the association said in a terse warning.