Business Standard

UP sugar firms work on consensus for 06-07 season

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BS Reporter New Delhi
A meeting was organised by leading sugar companies of UP for a consensus on cane sharing in the 2006-07 sugar season.
 
The companies are believed to have come to an understanding that there will be no poaching on the cane areas of rival sugar mills.
 
The meeting, organised at the initiative of the chief executive of Bajaj Hindusthan Limited, Kushagra Bajaj, was attended by Dhruv M Sawhney, chairman and managing director of Triveni Engineering and Industries; G S Mann, chairman and managing director of Simbhaoli Sugar Mills; Gaurav Goel, managing director of Dhampur Sugar Mills; K B Lal, executive director of Shadilal Enterprises (Shamli factory); and Shailendra Mohan of the Dainik Jagran Group (Shakumbari and Allied Industries at Saharanpur).
 
According to Mann, the meeting was purely "exploratory" in nature, and the companies discussed the prospects of the coming season given the fall in sugar prices.
 
"The companies are by and large of a consensus that they should avoid poaching on another's reserved area," said Lal.
 
Goel said, "We just tried to see that we do not go into the area of other mills, and it was a very routine affair."
 
In the 2005-06 season, there have been instances of mills offering incentives to farmers to poach on the reserved areas of other mills.
 
Most of these companies have set up new mills that will start crushing in the coming season and are likely to face a stiff competition over supply of cane.
 
Bajaj has set up three new sugar mills (at Saharanpur, Lakhimpur and Pilibhit), Triveni, three new mills (at Rampur, Moradabad and JP Nagar), Simbhaoli has set up a mill at Ghaziabad, and Dhampur has set up one at Badayun.
 
All together, 18 new mills with a combined capacity of about 1.11 lakh tonnes crushed daily will become operational in UP in the 2006-07 season.

 
 

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First Published: Sep 29 2006 | 12:00 AM IST

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