Failure to realign cane prices to sugar prices would continue to pose 'formidable challenges' in Tamil Nadu and inflict heavy losses for private sector mills for the 2014-15 season, sugar major Rajshree Sugars and Chemicals said here today.
"Government of Tamil Nadu has announced State Advised Price of Rs 2,650, including transport charge of Rs 100 per tonne for sugarcane for 2014-15 season. While the retention of SAP at same level (compared to last year) has brought no new negatives, failure to realign cane prices to sugar prices in Tamil Nadu will continue to pose formidable challenges in the state for Tamil Nadu," the company said in a statement.
"It would inflict hefty losses for private sector sugar mills in Tamil Nadu for 2014-15 season", it said.
The company noted that private sector mills in the state have been urging the Government to introduce revenue sharing formula like Karnataka and Maharashtra and said both governments have also expressed inability to pay higher cane price in the backdrop of steep fall in sugar prices.
