By IANS,
Lucknow: Claiming that the steep rise in the state advised price (SAP) announced by Uttar Pradesh Chief Minister Mayawati earlier this week would not be viable for them, the state’s sugar mill owners said they had decided to oppose the move in court.
“We have already written to the state government expressing our inability to bear the burden of this huge increase of Rs.40-45 per quintal in the SAP. In case the government does not heed our request to roll it back, we would be constrained to take the issue to the high court,” Uttar Pradesh Sugar Mill-owners Association (UPSMA) secretary S.L.Gupta told IANS.
“The revised SAP of Rs.235-250 per quintal would result in heavy losses to the mills, and it would not be possible for most of the owners to run their mills,” he added.
According to Gupta, the mill owners were already facing the financial crunch on account of the high SAP announced by the state government in 2010-11.
“Last year, the sugar production cost had touched Rs.29 per kg and this was likely to go further up to Rs.34 a kg this time, while the market price of sugar was not expected to go beyond Rs.30.”
Gupta said that with the restrictions on exports already in place, it would be impossible for the mills to break even.
“And if we were to pay at the revised SAR rates, then Uttar Pradesh’s 125 sugar mills were bound to suffer losses to the tune of Rs.3,000 crores during the forthcoming crushing season.”