Faced with the prospects of incurring huge losses, private sugar mills are pressing the state for concessions in the form of transport subsidy and a rebate in purchase tax before commencing the operations.

A meeting of the UP chapter of the Indian Sugar Mills Association (ISMA) was scheduled to be held in Delhi on Friday to discuss the current scenario but was postponed.

C B Patodia, president of UP chapter of ISMA said: “Union Agriculture and Food Minister Sharad Pawar has invited us for talks on November 10, where officials of the state government will also be present.”

“After this meeting, we will hold a meeting of mill owners and then decide on a schedule of commencing crushing and other related issues.”  

The Association has two major concerns. The immediate concern is the losses they are going to suffer due to the cane production which is sufficient only for 40 per cent of their capacity utilisation. To offset these losses, they want concessions from the government.

Since it is a sellers market, the mills are ready to pay the farmers a premium of over and above the state advisory price of Rs 165 to 170 per quintal depending on their quality.

Their next concern is that the price they will pay this year should not become the base for deciding the SAP next year.

Under the provisions of the UP Sugarcane (Supply and Purchase) Control Order, every sugar mill has to sign an agreement with the local cane cooperative society for buying cane.

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