Cane price up despite objection by mills
Wednesday, 19/11/2014
http://www.tribuneindia.com/2014/20141119/punjab.htm#11
Chandigarh : The Punjab Government has decided to raise cane price by Rs 5 per quintal for crushing season (2014-15) even as private sugar mills had been asking the government not to go ahead with the hike.
With cane crushing set to start from November 20, Chief Minister Parkash Singh Badal today agreed to raise the State Agreed Price (SAP) of early, medium and late varieties of sugarcane.
The government had raised cane prices substantially by Rs 40 per quintal during the last crushing season.
With this hike, the SAP of early, medium and late varieties of sugarcane in Punjab would be Rs 295, Rs 285 and Rs 280 per quintal for the 2014-15 crushing season.
Punjab-based private sugarmills had argued against the hike. They claimed there was no “viability” in running the mills as there were very high rates of cane in the state while current sugar prices were lesser than input cost.
A total of one lakh hectares of area is under sugarcane in Punjab, with cane production and sugar estimated to be 720 lakh quintals and 48 lakh quintals for 2014-15 crushing season. There are 16 sugarmills, including seven in the private sector, in Punjab with crushing capacity of 49,766 tonnes crushing per day. (With PTI inputs)
Bitter pill
Mill owners lament that the government raised cane prices substantially by Rs 40/quintal last year
They say the hike led to a financial loss of Rs 30 crore to Rs 50 crore per sugarmill
Owners say the industry’s input cost from producing sugar is Rs 3,600 per quintal but the wholesale sugar prices is ruling at Rs 3,200 a quintal
