Cane price: 5 UP mill inform BSE no crushing from Oct

Five sugar mills in Uttar Pradesh, including Simbhaoli, today informed the BSE that they will not start crushing operations in the new season starting October if the state does not adopt a new cane price policy.
In a separate filings to the BSE, Simbhaoli Sugars, Dwarikesh Sugar Industries, Oudh Sugar Mills, Upper Ganges Sugar and Industries and Uttam Sugar Mills said that their mills would not operate in 2014-15 season (October-September).
The mills informed the state government on August 9 that they will not start operations in the new season in the absence of "long-term, transparent, logical and economically viable mechanism or formula" to determine the sugarcane price by the Uttar Pradesh government.

Simbhaoli Sugars said that it has issued notice of suspension to the state government as the company's present liabilities are significantly higher than the current assets due to financial constraints.
It said that the company has been incurring losses due to financial difficulties due to higher cane prices in previous years, lower sugar realisation and high finance cost.
Dwarikesh Sugar Industries said it has been "compelled" to suspend its operations at all three units with immediate effect and urged the state government to work out a "suitable formula" for fixing a reasonable sugarcane price considering the recommendation of the Rangrajan Committee.

Last week, UP Sugar Mills Association (UPSMA) representing 96 private mills, had threatened to shut down operation in 2014-15 season if the UP government continues to fix cane price arbitrarily.
The state government has initiated action against millers for not paying cane arrears, which has touched about Rs 7,000 crore. Mills say they are unable to clear dues owing to financial difficulties being faced in view of high cane price set by the state.
Meanwhile, the Centre has called a meeting on August 14 to resolve the issue.