New Delhi, November 28 The impasse over cane prices between the Uttar Pradesh Government and sugar mills continued with the Indian Sugar Mills Association (ISMA) declining the state’s offer to set up a high-level panel to look into linking cane and sugar prices.
According to ISMA Director-General Abhinash Varma, about 76 of 99 private sugar mills had already given suspension notices to the state government and there was no need for a state-operated panel considering that the Centre’s high-level Rangarajan Panel had already given its recommendations on the issue. “Please implement Rangarajan committee’s recommendations on linking sugar cane prices to sugar prices and get out of the politics of the fixing sgarcane prices,” he said
Varma said no further high-level committee was required considering that PMEAC Chief C Rangarajan had already given a formula for determining the sugarcane price. If its recommendations are accepted the matter could be resolved immediately, he said, adding the sugar mills were not in a position to pay more than Rs 225 per quintal, Rs 55 less than the state-advised price of Rs 280. If the sugar prices increase, the mills will be in a position to pay more, he added.
Meanwhile, assuring the Centre’s full assistance in solving the UP sugar crisis, Food Minister KV Thomas asked sugar mills and farmers not to “precipitate” the crisis. He also asked the UP Government to settle the issues with sugar industry at the earliest so that mills start crushing operations in the current season that started from October. The informal group of ministers, headed by Agriculture Minister Sharad Pawar, would take a decision on all sugar-related issues, including financial package.
According to Varma, arrears could increase to Rs 15,000 crore by March if the current pattern of pricing was followed. Besides, banks were refusing working capital loans because of the weak financial position of the mills. Even though UP government also offered to waive entry tax which would help sugar mills save around Rs 220 crore and also offered a subsidised interest scheme which would help sugar mills save Rs 190 crore sugar mills to avoid losses, Varma maintained that the UP mills could not afford to pay anymore than Rs 225 per quintal, which was still more than the FRP of Rs 210 per quintal.
Cash-starved UP private millers have decided not to start operation in 2013-14 marketing year (October-September) saying they were not in a position to pay more than Rs 225 per quintal to farmers as against the state advised price (SAP) of Rs 280 a quintal announced by State. While Thomas said out of 122 mills in UP, 50 mills had started, Varma said 17 cooperative and four private mills had started crushing. As many as 76 private sugar mills have shut crushing operations. On Wednesday, crucial talks between UP government and mill owners to break the logjam over cane crushing operations failed.