Sugar factories are requesting UP government for financial support to pay Farmers arrears

Uttar Pradesh sugar mills have requested state governments, as they have been considerably lower in sugar recovery, increasing diesel prices and higher carrying inventories, to provide the industry with financial assistance that has made sugar production unsustainable, impacting farmers' payment ability. 

In the existing sugars session that ranges between October 2020 till September 2021, the Uttar Pradesh Government still needs to reveal the state-considered sugarcane price. Mills still pay at a rate of rupees 315 per quintal that was earlier set. 

The Uttar Pradesh Sugar Mills Association (UPSMA) said in a statement that this year's lengthy crush season as well as adverse climatic conditions led to a decrease in sugar recovery. The final recovery could be reduced by at least 0.5% by the end of the year, according to the experts. Experts. It says that this could push sugar production costs by approximately rupees 150 per quintal compared to last season. 

Diesel Prices: 

Likewise, the rise in diesel prices has raised the sugar cane shipping costs. Around 50 percent of the sugarcane is borne by the factories and the shipping allocation, as necessary, accounts for less than 50 percent of the overall interest accrued, according to UPSMA. The study also reported that the per capita sugar intake was significantly influenced by the Covid-19 pandemic. 

This has contributed to large volumes of unsold sugar still in the factories, affecting the prices of the market. The mills pointed to suggestions by the Union Cabinet sub-committee led by Home Minister Amit Shah that a mandatory sale price of rupees 33 for each kilo should be proposed. The subcommittee's proposals do have to be applied as the price is not adequate to fulfill the cane price commitments of the sugar factories, he added. 

Diesel Prices: 

Likewise, the rise in diesel prices has raised the sugar cane shipping costs. Around 50 percent of the sugarcane is borne by the factories and the shipping allocation, as necessary, accounts for less than 50percent of the overall interest accrued, according to UPSMA. The study also reported that the per capita sugar intake was significantly influenced by the Covid-19 pandemic. 

This has contributed to large volumes of unsold sugar still in the factories, affecting the prices of the market. The mills pointed to suggestions by the Union Cabinet sub-committee led by Home Minister Amit Shah that a mandatory sale price of rupees 33 for each kilo should be proposed. The subcommittee's proposals do have to be applied as the price is not adequate to fulfill the cane price commitments of the sugar factories, he added.