UP sugar mills find Mulayam victory sweet

Last Updated: Tuesday, March 6, 2012 - 17:39

New Delhi: Samajwadi Party`s convincing win
in Uttar Pradesh on Tuesday cheered over 100 sugar mills in the
state, the country`s second largest producer of sweetener.

Pointing out that no new investment came in the sugar
industry in last five years in UP, the industry`s apex body,
ISMA, said it has high hopes on Mulayam Singh, who is set
become the next Chief Minister of the state.

"We expect that new government will formulate
policies to encourage investment in the sugar sector which was
almost missing in last five years. No new sugar plant was
established in last five years," Director General of Indian
Sugar Mills Association (ISMA) Abinash Verma said.

He noted that the incentives announced by the then SP
Government in 2004 were discontinued during last five years
and hoped that the same would be revived by the incoming
government.

Verma said that the cane price arrears have mounted to
about Rs 4,000 crore as millers are incurring losses since
past couple of years.

"We expect that the new government would provide some
financial incentives to help sugar mills in clearing the cane
price arrear," he added.

The cane arrears to UP farmers are due to high State
Advisory Price (SAP) announced by the Mayawati government for
the 2011-12 marketing year at Rs 240 per quintal, the industry
felt.

However, stocks of UP-based sugar mills could not sustain
their initial gains amid an overall stock market downtrend.

PTI



First Published: Tuesday, March 6, 2012 - 17:39

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