Uttar Pradesh sugar mills owners meet CM Adityanath, seek bailout package
The fall in domestic sugar prices has brought mill owners at the doorsteps of Uttar Pradesh Chief Minister Yogi Adityanath, seeking an immediate bailout package to keep the industry afloat.
The ex-factory sugar prices have fallen by almost 15 per cent from about Rs 3,750/quintal to Rs 3,200/quintal now, when UP cane price, State Advised Price (SAP), was fixed in the last week of October 2017.
While, UP cane crushing season is on in a full swing, with the mills producing about 4.5 million tonnes (MT) of the sweetener, the mills have already accumulated arrears of about Rs 18.50 billion. The fall in net realisation would further push the quantum of arrears in the weeks to come.
According to sources, a group of mills owners had called upon the CM last week apprising him of the current sugar price situation and seeking a bailout package in the form of staggered cane payment system, waiver in cane society commission of Rs 5.10/quintal and subsidy of Rs 30/quintal of cane crushed for sustenance
