Chandigarh, November 15
The Punjab Sugar Mills Association today cautioned the state government against increasing the state assured price (SAP) of sugarcane as “it will lead to the closure of mills”.
The millers also sought ban on the import of sugar from Pakistan as it was adversely affecting the domestic production. Addressing a press conference here today, millers disputed the media reports about sugar selling for Rs 4,100 per quintal, saying it was selling for Rs 3,550 per quintal.
They said the peak price of sugar sold by the mills went to Rs 3,700 per quintal and the average for the season came to Rs 3,650. “The retail price, when it went to Rs 4,100 per quintal, included the cost of transport, GST and the trader margin. With the cost of production varying between Rs 3,500 and Rs 3,600 per quintal, there is little scope for us to pay more than the SAP of Rs 285-Rs 300 per quintal. As it is, higher cane production this year has already led to a fall in sugar prices, which have called by Rs 100 per quintal in the past fortnight,” Inderbir Singh Rana of Rana Sugars told the media here today.
They warned that in case the sugarcane prices were raised beyond Rs 300 per quintal, it would lead to massive losses to the millers and they might not be able to make timely payment to the farmers.
Besides, the millers added, they were subjected to unfair competition with the import of sugar from Pakistan at a price less than the domestic prices.
They said it was possible only because Pakistan government was providing export subsidy to the sugar exporters.
They said in case the government wanted to save sugarcane farming it must ban sugar imports from Pakistan.
The millers were represented by Rajinder Singh Chadha, Sandeep Singh Wahid, Inder Partap Rana and Harish Pahwa.