Image Credits: The Economic Times
Since 2017-18 proved to be a surplus season, the sale price of sugar is expected to fall more in the coming days. The The Bihar Sugar Mills Association (BSMA) have urged the state government to give subsidy at the minimum rate of Rs 40 per quintal. It will help sugar millers to meet financial loss to some extent.
Cane crushing in state during 2017-18 stood at 70 lakh tonne. With the sugar recovery rate of cane in the state being 9.5%, the expected sugar production would be 6.7 lakh tonne. However, the approximate cost of sugar production in the state is Rs 3,800 per quintal. Accordingly, the expected loss to the millers would be Rs 700 per quintal or Rs 485 crore in total.
The BSMA has also requested the state government to make early payment of the “pending subsidy” of Rs 70.97 crore to the sugar mills so as to help them in clearing the balance cane price payment of cane farmers.