The Indian Sugar Mills Association (ISMA) has warned that crushing operations at UP mills will not take place in 2014-2015. The body said UP sugar mills are still struggling to survive on high cane cost while cane price arrears are currently at alarmingly high level.

Sugar stocks are in focus as the UP sugar crisis has intensified with mill owners serving suspension notice to state government. The Indian Sugar Mills Association (ISMA) has warned that crushing operations at UP mills will not take place in 2014-2015. The body said UP sugar mills are still struggling to survive on high cane cost while cane price arrears are currently at alarmingly high level. Criticising that none of the promises made by UP government has fulfilled, ISMA has accused the state government of coercive action. The UP Sugar Mills Association had written to the UP government that unless cane prices are linked to sugar prices, in line with a formula recommended by the Rangarajan Committee, they would not be able to start their mills in the new season that begins in October. Also, the mill owners had asked the state government for further relief of Rs 9 per kg, in the letter dated July 8. However, none of these demands were addressed. Also, the Uttar Pradesh government has issued notices to 52 sugar mills for not making payments to cane farmers and also lodged 60 FIRs against 43 sugar mills. As on July 15, 2014, the dues of the sugarcane growers of Uttar Pradesh for the current sugar season 2013-14 are Rs 6,737 crore, mainly on account of low realisation from sale of sugar.