Sugar mills to start operations next month: UP govt

The Uttar Pradesh government today expressed confidence that 119 sugar mills will commence cane crushing operations almost on time next month even as private mills have threated not to start their units.
The state government expects some mills in western UP to operate from November 10 and others from the third week, UP Cane Commissioner Subhash Chand said here.
Normally, sugarcane crushing operations start from mid- November in UP. There were apprehensions that crushing may get delayed due to suspension threat given by the private sugar mills a few months back because of the cane price issue.
They had decided not to commence operations in the 2014-15 year (October-September) till the state government comes out with a rationalised cane price formula.

"Mills have assured that they will start operations. Some cooperative and private owned mills in western UP will start crushing operations from November 10, while others will start factories from the third week of November," Chand told reporters after attending a meeting on sugar here.
The state government expects about 119 mills to operate this season. Cane harvesting in the state has been delayed in some parts due to rains following cyclone 'Hudhud', he said.

When asked as to when the state government will fix the cane price, Chand said: "The process has begun. It will be announced much before November 10."

Last year, the state government had fixed the cane price of Rs 280 per quintal, much higher than the rate of Rs 210 per quintal set by the Centre.
Indian Sugar Mills Association Director General Avinash Verma said however that the suspension notice issued to the state government as not been withdrawn yet.
"66 out of 95 private mills of Uttar Pradesh have already issued suspension notice to the state government. In the interest of farmers, mills have agreed to start maintenance activity, which would take 40-45 days," he said.
However, mills would wait for a mechanism or a policy from the state government which determines cane price in relation to revenue generation, before starting crushing operations in full-swing in the state, Verma added.

For the current year, the Uttar Pradesh government has pegged the total sugar output to decline to 6.2 million tonnes from 6.49 million tonnes in 2013-14 season.