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

After the recent spurt in sugar prices in the open market, sugarcane farmers have demanded a minimum SAP of Rs 280 per quintal. Their argument is that gur (jaggery) and khandsari units are already paying them Rs 225 per quintal. For the last season, the SAP was Rs 145 per quintal for the common variety and Rs 150 per quintal for the early variety.

ISMA has represented to the state against a major hike in the SAP for the current season as demanded by the sugarcane farmers and their organisations. “We are in no position to pay more than Rs 155. The hike in levy sugar by the Centre from the earlier 10 per cent to 20 per cent of the total sugar production for feeding the public distribution system (PDS) had added to our woes,” said CB Patodia, president, ISMA, adding, “The price of levy sugar has been only marginally hiked by the Centre.”

Till last season, the price of levy sugar was Rs 1,350 per quintal, now this has been hiked to Rs 1,580 per quintal.

Patodia said, “We have represented to the UP government and also apprised Chief Secretary Atul Gupta of the financial position of the industry during a meeting on October 8.”

... contd.