The Uttar Pradesh Government and private sugar mills on Thursday stood firm on their stands on the sugarcane pricing issue.
While the State Government issued an ultimatum to sugar mills to start crushing operations by December 4 or face the consequences, private millers, led by the Indian Sugar Mills Association (ISMA), said they will not relent unless the recommendations of the C. Rangarajan panel on sugar decontrol is implemented in full. The Association also demanded lowering of the support or State Advised Price for sugarcane in UP.
“We cannot start our factories at the current price of Rs 280 a quintal that the State Government wants us to pay for sugarcane. It is not possible for us to pay anything more than Rs 225 a quintal,” said Abinash Verma, Director-General of ISMA.
In Lucknow, the UP Government announced the waiver of entry tax and purchase levy on sugarcane to soften the high procurement price. It also announced the setting up of a high-level committee under the Chief Secretary to look into all aspects of setting the cane price, including linkage with sugar prices.
“There is no scope for further talks (with mills) as several rounds of negotiations have failed. We are giving direction to mills to start crushing by December 4 or face legal action,” said Rahul Bhatnagar, UP’s Principal Secretary for Sugar Industry and Cane Development.
But ISMA’s Varma was firm that mills will not open unless the Government implemented the recommendations of the panel headed by the Prime Minister’s Economic Advisory Council chief. He blamed the State of politicising the sugarcane price issue.
Questioning the setting up of the high-level panel, ISMA said when the “highest possible” panel has made its recommendations, where is the need for another? “The industry does not have the strength to lose any more money. The basic demand is to accept the Rangarajan Committee formula and link the sugarcane price to the sugar price realisation. That will take away all the politics from fixation of price by the State. In the last three years, sugarcane price has increased by 70 per cent, while sugar price has gone up only by 8 per cent,” Verma told reporters.