 "Mounting sugarcane arrears bring mills at Akhilesh's doorsteps")
In the backdrop of Uttar Pradesh sugarcane arrears of 2012-13 crushing season breaching Rs 5,800 crore, the private sugar millers have approached the state government for respite.
The millers want cash subsidy of Rs 15/quintal towards cane price or interest free loan with a moratorium of 5 years.
Other sops demanded by the beleaguered sugar industry, include remission of Rs 2/quintal in purchase tax, withdrawal of entry tax on sugar and de-reservation of molasses.
The arrears of private millers alone stand at almost Rs 5,300 crore, while the rest of the arrears is accounted for by the cooperative mills.
A delegation of UP Sugar Mills Association led by its president S B Patodia had called upon chief minister Akhilesh Yadav here last evening and handed over a memorandum in this regard. The CM has reportedly assured them to look into the matter.
Similar representations had been made to the government earlier on December 19, 2012, February 15 and March 28, 2013 highlighting that the “sugar industry is going through a severe financial crisis due to a steep hike in state advised cane price coupled with abnormal fall in sugar prices.”
On December 7, 2012, the Akhilesh government had announced 17% hike in the 2012-13 cane State Advised Price (SAP) for the common variety of cane, which forms the bulk of sugarcane crop in UP.
SAP was hiked to Rs 280/quintal for common variety vis-à-vis Rs 240/quintal during 2011-12. The prices for early and rejected/unsuitable varieties was hiked to Rs 290/quintal and Rs 275/quintal compared to Rs 250/quintal and Rs 235/quintal respectively.
The hike was projected to translate into sugarcane payments of Rs 21,500 crore this season compared to Rs 18,200 crore during 2011-12. Meanwhile, the millers have urged for increasing in transport rebate to Rs13/quintal owing to increase in diesel price from Rs 21.47/litre in 2002 to Rs 49.95/quintal in 2012.
The millers want cash subsidy of Rs 15/quintal towards cane price or interest free loan with a moratorium of 5 years.
Other sops demanded by the beleaguered sugar industry, include remission of Rs 2/quintal in purchase tax, withdrawal of entry tax on sugar and de-reservation of molasses.
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Besides, the millers want remission of Rs 3 per/quintal in society commission vis-à-vis society commission of Rs 5.10/quinal at present.
The arrears of private millers alone stand at almost Rs 5,300 crore, while the rest of the arrears is accounted for by the cooperative mills.
A delegation of UP Sugar Mills Association led by its president S B Patodia had called upon chief minister Akhilesh Yadav here last evening and handed over a memorandum in this regard. The CM has reportedly assured them to look into the matter.
Similar representations had been made to the government earlier on December 19, 2012, February 15 and March 28, 2013 highlighting that the “sugar industry is going through a severe financial crisis due to a steep hike in state advised cane price coupled with abnormal fall in sugar prices.”
On December 7, 2012, the Akhilesh government had announced 17% hike in the 2012-13 cane State Advised Price (SAP) for the common variety of cane, which forms the bulk of sugarcane crop in UP.
SAP was hiked to Rs 280/quintal for common variety vis-à-vis Rs 240/quintal during 2011-12. The prices for early and rejected/unsuitable varieties was hiked to Rs 290/quintal and Rs 275/quintal compared to Rs 250/quintal and Rs 235/quintal respectively.
The hike was projected to translate into sugarcane payments of Rs 21,500 crore this season compared to Rs 18,200 crore during 2011-12. Meanwhile, the millers have urged for increasing in transport rebate to Rs13/quintal owing to increase in diesel price from Rs 21.47/litre in 2002 to Rs 49.95/quintal in 2012.