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News


Populism makes Sugar Bitter for UP Millers
Date: 30 Nov 2013
Source: The Economic Times
Reporter: Man Mohan Rai
News ID: 2864
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The biggest party contributions in Indias most politically crucial state used to be made by the sugar companies,say Uttar Pradesh veterans.But from a position of vast influence in the states affairs,the industry says its now a victim of Uttar Pradesh government policy as political parties rush to seek the support of farmers,at the cost of the mills.Ahead of next years general elections,the mills say this currying of favour has brought them to the brink.Nearly 100 of the states mills have stopped processing cane,sparking a war of words,with the Uttar Pradesh government threatening action against them.We have been in the sugar business for the past 80 years and never seen such bad times, said one of the biggest mill owners in the state.At the heart of the crisis is the higher state-mandated price that mills have to pay farmers.At the other end,the retail price is controlled,which means that costs cant be passed on.Never was the crisis so big as now,nor was there ever a shutdown in our 80 years of being in the business, said the miller cited above.
 
 
  

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