Lucknow: Hit hard by the steep hike in the state-advised price (SAP) of sugarcane for the current year, the Uttar Pradesh sugar industry is seeking some relief from the government. In a letter to CM Akhilesh Yadav, the Uttar Pradesh Sugar Mills Association (UPSMA) has asked the government to “extend a helping hand to the sugar industry at this critical juncture, so that the factories are able to discharge their obligation for the payment of cane price”.

“The UP Sugar Millers Association is greatly concerned about the steep hike in SAP for the current year by R40 per quintal, which has placed the entire sugar industry in Uttar Pradesh in a great financial stringency. However, in compliance with the state government's orders, we have advised our member factories to start marking cane price on purchases and start making payments for cane price, so that farmers’ interests remain protected. But the gap between the actual cane price and the cane price paying capacity of factories is more than R40 per quintal...” UPSMA chairman CP Patodia has written to the cM.

Saying that in 2011-12, too, there was a similar steep hike in cane price and sugar factories in Uttar Pradesh had incurred a net deficit of over R2,000 crore, the letter said that many factories are still reeling under great financial hardship.