In an attempt to downplay the threat of shut-down from sugar mills in Uttar Pradesh (UP), Food Minister, Ram Vilas Paswan, underscored that government though was ready for any eventualities, but was also prepared to extend export subsidy and give additional interest-free loans to clear cane arrears. He also asserted that sugar prices would not surge in absence of production from sugar mills in UP since the country had sufficient stock.
Burdened by payouts of around Rs 4,500 crore of cane arrears to farmers, private millers in UP, the second largest sugar producing state, threatened to shut operations this year, if cane prices were not linked to sugar rates. However, not budging from its stand, government has yet again sought mills’ guarantee to pay the cane arrears, before any relief package could be doled out.
Food Minister, Ram Vilas Paswan, expressed confidence that the standoff between the UP government and the mills over cane policy would be resolved, however he criticized the two different stands taken by the millers, with the first one being agreement to pay higher cane price fixed by state and later the denial by showing the inability to do so.
Further, the minister also pointed that while the farmers had many options to grow other crops like wheat, but sugar mills, which were set up with crores of rupees of investment, did not have an option other than producing sugar.
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