Uttarakhand announces sops for sugar sector

After fixing the state advised price (SAP) for sugarcane for 2014-15, the Uttarakhand government has now announced sops for the ailing sugar sector.

In December, the state Cabinet had fixed the cane price at Rs 280 a quintal in the state. Last year, SAP in Uttarakhand was Rs 285 a quintal.

According to a new government order, sugar mills will be required to pay Rs 240 a quintal to farmers in first tranche within 14 days of the cane purchases this year.

In the second tranche, the mills will have to pay Rs 20 a quintal in the next three months after the culmination of the crushing season. The rest Rs 20 will be paid in subsidy by the government to the sugar mills. This includes a reimbursement of Rs 6.6 a quintal in form of the society commission.

The government would waive a tax of Rs 2 a quintal on sugarcane purchase and also exempt Rs 2.8 a quintal on entry tax. Besides, the government will also pay Rs 8.6 as cash in form of the additional assistance.

"The price of sugarcane in Uttarakhand is the same what it is now in Uttar Pradesh. But we are also giving some incentives to sugar mills in view of their losses," said Surendra Kumar, the media in-charge of Chief Minister Harish Rawat.

The state government had lowered the price of SAP by Rs 5 in the state because Uttarakhand mills were buying sugarcane from Uttar Pradesh farmers.

In 2012-13, the government had made an increase of 15 per cent in SAP, fixing the price at Rs 285, from Rs 250 earlier. Since then, there had been no change in SAP for the past two years. However, in the first week of December, Negi had said SAP for 2014-15 will be Rs 285 a quintal. But in less than one month, the price was lowered by Rs 5 a quintal.

Experts said the sops were announced under the pressure of sugar mills which were facing the heat of falling sugar prices in the country.

MAKING IT SWEETER

• In December, the state Cabinet had fixed the cane price at Rs 280 a quintal
  

 

According to a new government order, the government will pay Rs 20 a quintal in subsidy to the sugar mills, including a reimbursement of Rs 6.6 a quintal in form of the society commission
 

The government would waive a tax of Rs 2 a quintal on sugarcane purchase and also exempt Rs 2.8 a quintal on entry tax
 

It will also pay Rs 8.6 in form of the additional assistance