The Indian Sugar Mills Association (ISMA), an organisation of private sugar mills, has opposed any substantial increase in the state advisory price (SAP) of sugarcane for the current season. It has also demanded subsidy from the government in case the SAP is fixed above Rs 155 per quintal.

The sugarcane farmers, however, have demanded a minimum SAP of Rs 280 per quintal after the recent spurt in sugar prices in the open market. Their argument is that gur (jaggery) and Khandsari units are already paying them Rs 225 per quintal.

For the last season, the state government had fixed the SAP at Rs 145 per quintal for the common variety and Rs 150 per quintal for the early variety.

“We are in no position to pay more than Rs 155. The hike in levy sugar by the Centre from 10 to 20 per cent of the total sugar production to feed the public distribution system has added to our woes,” said C B Patodia, president of ISMA. The price of levy sugar has been only marginally hiked by the Centre, he added. Till last season, the price of levy sugar was Rs 1,350 per quintal, now this has been increased to Rs 1,580 per quintal.

“We have also apprised Chief Secretary Atul Gupta of the financial position of the industry during a meeting on October 8. The government should subsidise private sugar mills in case it decides to fix the SAP above Rs 155 per quintal,” said Patodia.

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