No breakthrough in sugar barons’ meet with UP Chief Minister

NEW DELHI/LUCKNOW: Uttar Pradesh sugar industrialists did not budge from their position of not running the mills on Wednesday after a meeting with chief minister Akhilesh Yadav failed to yield a solution on cane pricing. Industrialists have demanded that the cane price be linked to sugar’s market price and opposed the government’s suggestion of Rs 280 a quintal saying it’s unviable at a time when sugar prices are low.

In a bid to show their desperation, they suggested that the government operate the mills for the sugar season 2013-14 with the industry’s support. “The government would be able to understand our financial situation better,” said a person close to the development. He also said the mills have also given an alternative of running the mills for the state on a noprofit, no-loss basis.

The two consecutive meetings that the industry had with the chief minister this week have not led to a breakthrough. “The shutdown will continue. None of the mills would start crushing,” he said.

Yadav said the government was working on a solution which would benefit farmers, millers and consumers alike. “We will balance (the interests of) all the three stakeholders -- pay remunerative price to farmers, ensure that the mills run and sugar prices are kept reasonable. 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 the state government had not reduced the SAP as demanded by mills because the government wanted to ensure that farmers get a fair price. The UP sugar industry declared a shutdown last week owning to high cane prices and mounting cane arrears. State-advised price of cane in UP is Rs 280 per kg while the industry has demanded Rs 225 per kg. Total cane arrears in the state is at Rs 2,400 crore.