The sugar production this year could be affected if the logjam in Uttar Pradesh over cane price continues and crushing delays, Food Secretary, Sudhir Kumar said today.
The deadlock between the UP government and cash-starved sugar mills continue as the latter have refused to start crushing operations as they are dissatisfied with the state advisory price (SAP) of Rs 280 per quintal for sugar cane in 2013-14. Mills have maintained that they cannot pay more than Rs 225 per quintal this year.
When asked whether India’s overall sugar production could drop in 2013-14 if crushing delays in UP, Kumar said: “If the logjam continues and crushing delays, obviously, there will be some impact on total sugar production. At this point, I cannot say how much would be the exact impact.”
The sugar availability even then would be sufficient to meet the domestic demand of about 22 million tonnes, he said.
“Even if there is some drop in UP production, the domestic availability will not be affected as we have the opening stock of 85 lakh tonnes that can meet demand for nearly five months,” Kumar said.
Production in Uttar Pradesh, the second biggest sugar producing state after Maharashtra, is between 70-75 lakh tonnes a year, he added.
Asked if the Centre would interfere to resolve the UP sugar industry issue, Kumar said, “We have no role to play with regard to SAP. It is between the state government and millers. They should resolve amicably for the interest of the overall economy.”
Sugarcane crushing in the state normally begins in the second week of November. So far, the UP mills have not yet started their operations.
According to industry body Indian Sugar Mills Association (ISMA), the country’s total sugar production is estimated at 250 lakh tonnes for the 2013-14 marketing year (October-September), slightly higher than 245 lakh tonnes in the last year.