UP Sugar mills association threatens to close operations

UP Sugar mills association threatens to close operations

sugarcane--621x414--621x414Lucknow, Jul 25 - Uttar Pradesh Sugar Mill Association has refused to yearmark the cane area for respected sugar mills and quantity of cane required for the next crushing season with threatening to close the operation due to acute financial crisis. In a letter to state cane commissioner, recently the association said the sugar mills of the state are facing unprecedented financial crisis due to steap fall in the sugar prices and totally unfavourable atmosphere for the business of sugar crushing. The association in the letter further said that similar situation persist in Maharashtra, Karnatka and some other states. The three sent on July 21 that even after a loan package of Rs 6,000 crores to the sugar mills by Union Government the total cane arrears of the mills stands to around Rs 20,000 crores. The financial package would only give Rs 20 per quintel subsidy to the mills but to cover up the crisis there is an urgent need of another subsidy Rs 50 per quintel. The letter also says that UP government has fixed Rs 280 per quintel in 2014-15 which is very high side when the sugar prices has fallen to Rs 2200 per quintel and still falling. The association has clearly quoted that the mills can pay just around Rs 173 per quintel in the present situation. Under these circumstances the association said it would be not be possible for our member sugar mills to commit sugar cane purchase in the 2015-16 unless a long term solution is made.

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