The private sugar mills have yet again shown their inability to pay cane price in view of fall in sugar price and import of sugar from Karnataka and Maharashtra in Utar Pradesh and urged the state government to revise the State Administered Price (SAP).
In a letter to Principal Secretary, Sugar secretary of Uttar Pradesh Sugar Mills Association Deepak Guptara (rpt Guptara) said the SAP was declared in UP when sugar price was less than Rs 3000 per quintal. However, this price has come down to Rs 2700 with the result mills are unable to sell their stock in the open market.
“The problem is compounded by the fact that sugar from Karnataka and Maharashtra is finding place in UP at a rate which is Rs 200 per quintal cheaper than our sugar. This is because of lowest cost of production in those mills,” Guptara said. He said the situation has come to such a stage where mills in
Maharashtra enjoying benefit of a lower cane price coupled with high recovery and high yield is unable to pay cane price fixed by Government of India.
“Moreover, the country has huge excess of sugar due to which parices are not firming up,” he said and added: “Sugar exports are also held up due to pending announcement of subsidy by central Government.” He said in this situation the mills are facing the brunt. Unless the government intervenes it would not be possible for millers to pay cane price.