Run our mills; UP sugar industry tells state government, shutdown to continue

NEW DELHI: Inching towards mediation, UP sugar industry asked the government to run their mills for the sugar season 2013-14 with industry's support. UP sugar industry players however maintained their stand on the shut down till cane price linkage formula is implemented.

"The government would be able to understand our financial situation better then," said a sugar industry source close to the development. He also said that the mills have also given an alternative option of running the mills for the state on a no profit, no loss basis.

The two consecutive meeting of the industry with the chief minister Akhilesh Yadav this week, didn't lead to an conclusive decision on cane price or implementation of Rangarajan cane price linkage formula, said one of the participants in the meeting.

"Till then, shut down will continue. None of the sugar mills would start crushing," he said.

Meanwhile, CM Yadav on Wednesday said that they are working on a solution, which would benefit farmers, millers and consumers. ""We will balance all the three stakeholders, pay remunerative price to farmers, ensure that the mills run and sugar prices are kept under reasonable limits. We want to address any issues that the industry may have but will ensure a balance"".

He said that the Congress led UPA government was to blame for the current crisis due to faulty policies. Yadav said that they have not reduced the SAP as demanded by mills as they want to ensure that farmers do not get hurt.

UP sugar industry declared shut down last week owning to high cane price and mounting cane arrears. State advised price of cane in UP is Rs 280 per kg, while the industry demanded Rs 225 per kg. The total amount of cane arrears in the state is Rs 2,400 crore currently.