UPSMA questions decision to hold cane reservation meeting

Questioning the state Government’s decision to fix cane reservation meeting, the Uttar Pradesh Sugar Mills Association (UPSMA) asked what was the use of this meeting when majority of private mill owners had been issued suspension notice.

The meeting is slated for September 10.In a press statement issued here on Thursday, the UPSMA  spokesman said that 66 out of the total 95 private sugar mills in the state had been served ‘suspension notices’ informing that they were not in position to start their crushing operations in 2014-15 season.

Calling the suspension notice a threat, the sugar mill owners said they were not only unfair but also ignored the reality and gravity of the situation. He said the sugar mills in UP had been continuously losing money and were not being able to clear their cane dues. “The situation is so bad that most banks are unwilling to extend loans to the sick mills,” the spokesman said.  

He said in view of the suspension notice issued by the Government, the mills had withdrawn maintenance staff. “Thus, it does not make any sense to participate in the meetings for cane reservation for the coming season,” he added.“The meeting called by the UP Cane Department without resolving the problems of cane pricing is not only premature but also a non-serious attempt of the state Government, and it will only mislead the farmers and consumers,” the UPSMA spokesman said.

The association again appealed to the UP Government as well as the Centre to quickly resolve the issue of adoption of rationalised cane pricing policy so that maintenance work could be started and bank loans could be arranged to ensure that the mills started crushing operation by November.