Confusion over pricing impedes crushing operations in UP

LUCKNOW: Confusion over cane prices has hit crushing in Uttar Pradesh. Though the third week of November has begun, only 50 of the 125 sugar mills in Uttar Pradesh are crushing cane. Even at these mills, crushing is at a slow pace and most mills continue to operate at sub-optimal levels.

With the price decided by the state being challenged in court, there is no clarity over the money to be paid to farmers. The UP Sugar Mills Association has challenged the price in the Lucknow bench of the Allahabad High Court which heard the matter on November 17.

The writ has questioned the UP government's right to fix cane price when the central government has amended the Sugarcane (Control) Order by which the SAP has been replaced with the Fair and Remunerative Price (FRP) fixed by the Centre.

The writ has pointed out that on 6 July the UP government had shown the cost of cane production to be at Rs 161.33/quintal and even if a 20% profit is added to it, the cane price should not exceed Rs 193/quintal. Given the current and expected price of sugar, millers say their paying capacity was Rs 191/quintal only.