A steep rise in sugar prices is helping the sugarmills in Uttarakhand reap good profit this season.
“Our estimates suggest that sugarmills in the state are making profit,” said a top government official. Retail prices have already increased 30-40 percent this season and are likely to go further up, the official said.
Buoyed by the profit, sugarmills both in private and government sectors have also started clearing the dues of farmers in this season itself. They have made payments to the tune of Rs 50 crore to farmers this season in the government sector. Some of the private mills are also following suit.
However, sugarcane production in the state is likely to come down during 2008-09 due to closure of mills.
Of the total 10 sugarmills in the state, eight have already closed and two more are on the verge of closure creating a shortfall in production. Currently, only Bajpur in Udhamsingh Nagar district and Uttam Sugarmill at Liberhedi in Haridwar district are operational.
The sugarcane production, which touched 78.5 million quintal last year, is estimated at 63 million quintal during 2008-09, official statistics said.
Similarly, the sugarcane area in the state has also declined 20-25 percent at 97,000 hectares.