Previous year bumper production of sugar is bothering the sugar mills and put them in distress. Last year’s 16.11 lakh quintals of sugar is still kept in warehouses in Bijnor district. After the commencement of the crushing season, new stock of sugar is piling up in godowns. Maharashtra and Uttar Pradesh are facing the crisis of surplus stock of sugar.
Last year, for the first time, sugar mills had sugarcane crushing for more than ten crore quintal, and it had produced more than 123.43 lakh quintal of sugar. Due to excess sugar production and low demand in the market, sugar prices decline rapidly. Following which, the central government had fixed the quota of sugar by fixing the minimum selling price of sugar at Rs 2,900 per quintal.
This year due to less crushing of sugarcane, low sugar production is expected. Despite various government measures to bail out sugar mills from their financial woes, cane payment arrears is escalating with each passing days.
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