Don’t increase cane prices, U.P. sugar mills appeal to govt.

September 30, 2017 09:11 pm | Updated 09:14 pm IST - Meerut

Representational image.

Representational image.

Sugar mills in Uttar Pradesh have requested the State government not to increase the prices at which sugarcane is purchased from farmers this year. In a letter written to the Chief Secretary of the State, the U.P. Sugar Mills Association (UPSMA) said that any increase in cane prices would hit them hard “as the cane industry has been going through losses for last three consecutive years”

Farmers in distress

The request comes days after distressed farmers of the State alleged that the present rate of ₹305 per quintal of cane was much lower than the total input cost that goes into the farming of cane in U.P.

Farmers have waged a campaign to increase the State Advised Price (SAP) to ₹400 per quintal.

Uttar Pradesh became the highest producer of sugar last year, contributing close to 42% of the total sugar production in India.

To push forth its request, the UPSMA reminded the Chief Secretary that the present Chief Minister Adityanath had, on several occasions, said that increasing the procurement rate for sugarcane was not the solution to the problems of the industry.

Last year, the Samajwadi Party (SP) government increased the SAP of sugarcane by ₹25 and fixed it at ₹305 per quintal.

The UPSMA also urged the government to give the mills the option of paying sugarcane prices in two installments, and decreasing the commission paid to cooperative societies to ₹2 per quintal from the present ₹7.65.

The cane crushing season is expected to start from October.

The letter said that “sugarcane prices in U.P. are undoubtedly higher as compared to other major sugar-producing States”.

Excess production

“The overall increase in sugar prices have been marginal when compared to the substantial rise in cane prices. Though sugar prices decrease, cane prices continue to go up. Main reasons for this has been excess production and increased supply,” said the UPSMA letter.

“The industry has been suffering continuous losses from 2011 and is barely able to stand on its feet,” the letter added.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.