Private Uttar Pradesh sugar mills threaten to suspend operations
Private sugar mills in Uttar Pradesh have threatened to suspend operations, terming the state government's move to fix sugarcane prices as "unreasonable, unaffordable and illogical".
Sugar mills individually served notice of suspension to the UP cane commissioner. The notice was also marked to the state chief secretary and principal secretary of department of sugar.
"This has reference to the actions initiated and letters issued by you and your good office for commencing operation of the sugar mills in losses without due consideration of the extremely difficult situation and problems faced by the sugar mills and also without our participation in the cane reservation process," private millers said in the letter.
Uttar Pradesh is India's largest sugar producing state. The industry supports livelihood of over four million farmers in the state.
The millers requested the state government to "fix affordable sugarcane prices in accordance with the recommendations of the Rangarajan Committee appointed by the central government".
The millers want the cane price at 70 percent of the revenue realised from sugar, bagasse, molasses and press mud or at 75 percent of the revenue realised from sugar.
(Posted on 19-11-2013)