The Centre today asked the Uttar Pradesh Government to settle the issue with the sugar industry at the earliest so that mills start the crushing operations for the current season that began in October.

Assuring the Centre’s full assistance in resolving the UP sugar crisis, Union Food Minister, K.V. Thomas, asked sugar mills and farmers not to “precipitate” the crisis.

He said the domestic supply is comfortable on the back of huge opening stock of nearly 9 million tonnes.

Cash-starved UP private sugar millers have decided not to start operations in 2013-14 marketing year (October-September) saying that they cannot pay more than Rs 225 per quintal to farmers against the State Advised Price (SAP) of Rs 280 a quintal announced by the State Government.

“Our request is the State Government should take initiative so that crushing starts. Farmers and millers’ issues should be settled. All problems should be discussed and settled. Whatever assistance is needed from the Government of India, we will do it within our norms,” Thomas told reporters.

“We request farmers and millers make things smooth. The State Government should take initiative to settle the issue earliest. We appeal to farmers and mills not to precipitate the issue,” he added.

The Minister informed that 101 out of 170 mills have started functioning in Maharashtra. “Out of 122 mills in UP, 50 mills have started. More mills will start operations.’’

However, it may be noted that most of the private sugar mills have shut the crushing operations.

Yesterday, crucial talks between the UP Government and mill owners to break the logjam over cane crushing operations failed, with millers refusing to run their plants at the current high cane price.

Asked about the Centre’s plan to give financial package to sugar industry, Thomas said: “Today, we had discussion with the Finance Minister. We also had discussion with PMEAC Chairman, C. Rangarajan, on the sugar issue. An informal group of ministers will look into the financial package. Whatever possible within our norms, we will definitely support.’’

The informal group of ministers, headed by Agriculture Minister, Sharad Pawar, would take a decision on all sugar-related issues including financial package. “As soon as the Agriculture Minister comes, a meeting will be held to decide on the issue,” he added.