Amidst private sugar millers in UP threatening not to start crushing operations on the recently announced sugarcane price, Chief minister Akhilesh Yadav on Friday said his government wanted to ensure that neither the millers nor the growers faced any problems.
“The government is trying to strike a balance under which sugar mills are run and the farmers also get the right price for their produce”, Mr. Yadav said in response to a question after a function held in Lucknow to inaugurate radio taxi service in 13 cities in the state.
“The cane growers would never want that sugar mills are closed down and the government would not like that farmers faced any kind of problem,” Mr. Yadav said adding that talks were on with millers.
The government has announced the minimum prices for 2013-2014 keeping in mind all the aspects. SP government in one go had hiked the prices by Rs. 40 (per quintal) whereas the previous government used to raise it by Rs. 10 at a time, Mr. Yadav said.
Private millers had termed the prevailing price as high and “unviable” saying the mills will not be able to pay SAP - the minimum rate at which mills buy cane from farmers - of more than Rs. 225 per quintal this year as sugar prices are lower.
Faced with a cash crunch, more than 60 private sugar mills in Uttar Pradesh had on November 19 said that they would not start crushing operations in the 2013-14 marketing year until viable sugarcane prices are set by the state government.
A day later, state government had fixed the SAP (State advised price) of Rs. 280/quintal for common variety, while Rs. 290 for early maturing variety and Rs. 275 for inferior cane maintaining last year’s prices.