UP sugar mills refuse to crush on state price

The sugar crisis in Uttar Pradesh took a new twist today when the mills told the state government they would not begin crushing till sugarcane prices in the state were rationalised.

"We have told (sugarcane development) minister Naseemuddin Siddiqui that we are not in a position to begin crushing in our mills as long as sugarcane prices are not linked with sugar prices," said an industry representative who attended a meeting with the minister in Lucknow.

Straddled with huge cane arrears and a bumper crop ready for harvest, sugar mills are reluctant to start operations until the state government agrees to lower the state-advised price (SAP), a tough choice for the Mayawati government as the state has over 7 million cane farmers.

Sugar mills usually begin crushing in October. This year, indications are that the process will begin only after Diwali.

As the mills are yet to begin crushing, some farmers have started selling to gur and khandsari units for Rs 55-70 a quintal, almost 50 per cent lower than last year's SAP of Rs 125-130 a quintal.