Bihar hikes sugarcane prices in state

Despite the protests of private sugar mills, Bihar Government has decided to increase the sugarcane prices by Rs 30-35 per quintal for the current crushing season. However, the prices are still lower than the neighboring state, Uttar Pradesh.

The state government has ordered the mill owners to pay Rs 255 per quintal for the normal variety, whereas for the premium variety cane they now have to shell out Rs 265 per quintal. The low yield variety cane growers will be paid at the rate of Rs 245 per quintal. In the last season, the normal, premium and low variety was fixed at Rs 225, Rs 230 and Rs 210 per quintal respectively. The price was fixed after a series of meetings between mill owners and state government officials.

 

"We did not want increase in the cane prices," said Bihar Sugar Mill Association secretary Naresh Bhatt, "The price of sugar is much less than the cost of production and the recovery rate is also very low in the state. The crushing capacity in the state is also less than required. In this scenario, we requested against the price hike."