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Govt to crack down on mills for selling sugar below MSP, letter warns

Sugar mills face cash crunch as they have to pay stipulated prices to buy cane from farmers at a time when there is a glut of sugar

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Rajendra Jadhav | Reuters Mumbai
The government has asked regional cane commissioners to take action against sugar mills selling sugar below a government-mandated price, a letter seen by Reuters showed.

The sugar mills are facing a cash crunch as they also have to pay stipulated prices to buy cane from farmers at a time when there is a glut of sugar, and they are heavily in arrears in those payments.

They are under intense pressure from the central government to make those payments as failure to do so could turn the sugar farmers, a powerful voting bloc, against it in the general election in April-to-May.
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First Published: Mar 27 2019 | 9:23 PM IST

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