UP sugar mills to boycott meeting called for fixing cane area

Private sugar millers in Uttar Pradesh have decided to 'boycott' a meeting called by the state government to fix area from where they will source cane for making sweetener in the next season starting October.
UP Sugar Mills Association (UPSMA) has decided not to participate in the meeting as it has given notice to the state government that they will not start crushing operations next season till the cane prices are not linked to sugar price.
Earlier this month, cash-starved private sugar mills in UP had threatened to shut down operations in the 2014-15 season if the state government does not link cane price with sugar realisation like some other states.

The UP state government has called district wise meetings beginning September 10 for fixing cane area for all the sugar mills in the state.
"In view of suspension notice given and maintenance staff having been withdrawn, it does not make any sense to participate in the meetings for cane reservation for 2014-15 sugar season," the UPSMA said in a statement.
Expressing 'surprise' over the meeting called by the state government, the association said: "It is unreasonable to talk about cane reservation when basic issue of rationalised cane pricing policy is yet to be resolved."

Faced with cash-crunch, the private sugar mills in the state have been demanding linking of sugarcane price with sugar rates and announcement of financial assistance of Rs 9 per quintal for payment of cane price for 2013-14 season.

"Calling the suspension notice a threat by the sugar mills is not only unfair but also ignoring the realty and the gravity of the situation. The sugar mills in UP have been continuously losing money in last few years, have not been able to cane price to the farmers on time and several of them have become sick and/or defaulters of banks across the country," the statement added.
The UPSMA has also appealed to both state and centre governments to quickly intervene and resolve the issue for adoption of rationalised cane pricing policy so that the maintenance work can start and bank loans could be arranged to ensure mills could plan to start their crushing operations.

Meanwhile, the Uttar Pradesh government today decided to provide an additional rebate of Rs 6 per quintal to the sugar mills on clearing cane dues to farmers latest by September 30.