Prime Minister Manmohan Singh asks Sharad Pawar to finalise steps on sugar industry

NEW DELHI: Prime Minister Manmohan Singh has asked Agriculture Minister Sharad Pawar to finalise as early as possible the recommendations of an informal ministerial group under him for resolving the issues facing the sugar industry.

Maharashtra Chief Minister Prithviraj Chavan on Tuesday met the Prime Minister and handed over a memorandum highlighting the problems being faced by the sugar industry.

Sources said Singh told Chavan that an informal group under Pawar is looking into the problems facing the sugar industry.

The informal grouping includes Finance Minister P Chidambaram, Food Minister KV Thomas and Civil Aviation Minister Ajit Singh, who hails from the sugar-belt of Uttar Pradesh.

As many as 65 sugar mills, including industry leaders Bajaj Hindusthan, Balrampur Chini and Dhampur Sugar in Uttar Pradesh have suspended operations saying it was unviable for them to buy sugarecane from the farmers at the prices set by the state government.

UP millers have said that they cannot pay more than Rs 225 per quintal to sugarcane farmers as against the state advised price (SAP) of Rs 280 a quintal announced by the state government.

The Centre is working on a financial package for cashstarved mills in Uttar Pradesh, the country's second largest producer.