A tug-of-war between sugarcane growers and millers resurfaced in Uttar Pradesh as mill owners threatened not to start crushing operations this season due to high cane prices set by the state government at Rs 280 a quintal, Rs 70 more than that set by the Centre.

Over 35 lakh farmers and thousands of workers’ livelihood are threatened by this standoff.

Facing about Rs 3,500 crore losses this season, private sugar mills in Uttar Pradesh, allegedly cash-starved, threatened on Tuesday to shut down operations in the 2014-15 season if the state government does not link cane price with sugar realisation as is the case in several other sugar-producing states like Maharashtra.

Blaming the UP government for fixing high cane price arbitrarily and taking coercive steps, UP sugar mills association said the cane prices were 'unsustainable' and said it has written to the state government pleading its case in this regard.

The Indian sugar mills association (Isma) has also warned that crushing operations at UP mills will not take place in October 2014 to September 2015 (the sugar year) as millers will not be able pay the high prices to growers.

A tug-of-war between sugarcane growers and millers resurfaced in Uttar Pradesh as mill owners threatened not to start crushing operations this season due to high cane prices set by the state government at Rs 280 a quintal, Rs 70 more than that set by the centre.

Over 35 lakh farmers and thousands of workers’ livelihood are threatened by this standoff.Facing about Rs 3,500 crore losses this season, private sugar mills in Uttar Pradesh, allegedly cash-starved, threatened on Tuesday to shut down operations in the 2014-15 season if the state government does not link cane price with sugar realisation as is the case in several other sugar-producing states like Maharashtra.

Blaming the UP government for fixing high cane price arbitrarily and taking coercive steps, UP sugar mills association blamed the state government for 'unsustainable' cane prices and said it has written to the state government in this regard. The Indian sugar mills association (Isma) has also warned that crushing operations at UP mills will not take place in October 2014 to September 2015 (the sugar year), as millers will not be able pay the high prices to growers.