Lucknow: Expecting excess sugar production following the bumper crop and existing surplus stocks, the UP Sugar Mills Association (UPSMA) have demanded the relief package from the state government. Sugar mills in the state are also against the increase in the state advisory price (SAP) of sugarcane for this season. According to the media reports, the state is likely to announce SAP in the next few days.
UPSMA made the government aware of the sugar industry’s grim situation in the state. In its latest letter written to the Chief Minister, UPSMA had demanded a subsidy/rebate of Rs 30 per quintal to bring the private mills’ cash flow at par with the 2018-19 crushing season.
The central government kept Fair and Remunerative Price (FRP) of sugarcane unchanged at Rs 275 per quintal for 2019-20 crushing season for a basic recovery rate of 10 per cent, whereas the state had announced SAP of Rs 315 per quintal, which was Rs 40 per quintal higher than the FRP.
Sugar mills in India have been claiming they are finding it difficult to pay sugarcane price as the average production cost of sugar is higher as against the MSP of 31 rupees per kg, and due to which they are bearing looses.
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