The sugar industry in Uttar Pradesh (UP) on Tuesday openly criticised the cane pricing policy of the state government and filed a petition at the Lucknow bench of the Allahabad high court, requesting quashing of the minimum buying price set for mills in 2011-12 by the administration.

The industry, through its apex body, the Indian Sugar Mills Association (Isma), also demanded central government intervention in the form of export permits for three-four million tonnes of sugar, removal of the levy obligation to feed ration shops and a quick announcement of a final price for ethanol.

Attacking the Mayawati government, Uttar Pradesh Sugar Mills Association secretary Shyamlal Gupta said, “The state government wants to increase the price of sugarcane as much as it can, keeping in mind the elections (next year). There is no logic behind increasing the SAP (state advised price). It is a political decision. Mills cannot pay this kind of price”. The state government has announced a Rs 35-40 rise per quintal of sugarcane to Rs 235-250 per quintal for different varieties.

Said Gupta: “At an estimated under-recovery of Rs four-five per kg, the sugar industry in UP could lose almost Rs 3,000 crore in one season alone.” Considering an average cane price of Rs 240 per quintal, the cost of sugar production in UP works out to Rs 34 per kg. For more visit: Business Standard

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