UP sugar mills ask for financial assistance from state government

153

New Delhi: Low sugar recovery, higher carry forward stock and increase in diesel prices has impacted the cash flow of the sugar mills in UP and they have urged the state government to assist them financially to help clear cane bills of farmers.

The UP Sugar Mills Association (UPSMA) has issued a statement stating that this year is a lengthy crushing season and adverse climatic conditions have resulted in lower recovery of sugar. By the end of the season, the average recovery could be lower by 0.5 per cent that could hike the sugar production cost by Rs 150 per quintal compared with last season.

According to the UPSMA statement, the increase in diesel prices have pushed the transportation cost of sugarcane. Almost 50 per cent of sugarcane is transported by the mills themselves and the Transport Rebate, as applicable, covers less than 50 per cent of the total cost incurred.

LEAVE A REPLY

Please enter your comment!
Please enter your name here