Chandigarh, Oct 3 (KNN)The Private Sugar Mill owners in Punjab have warned ceasing of operations in the upcoming crushing season starting in November if the Government does bridge the gap between centre’s Fair and Remunerative Price (FRP) and Sate Advise Price (SAP).

The FRP is Rs. 305 and SAP Rs. 360 per quintal.  

The private Mills have urged government to bear the gap of Rs 55 per quintal between the FRP and the SAP. There are nine sugar mills in the private sector and these mills owe Rs 125 crore to farmers of the previous season.

“Punjab’s sugar millers were at a disadvantage as the recovery (from sugarcane) in Punjab was 9.58 per cent as compared 10.9 to 11.47 per cent in various other states such as Uttar Pradesh and Maharashtra,” it said.

The association suggested that either the SAP should be re-fixed or an alternative subsidy be granted for difference of price between SAP and FRP.

The association further highlighted that, for the crushing season 2021-22, the state government had fixed SAP of Rs 360 per quintal, whereas FRP was Rs 295. The mills, it added, have suffered huge financial losses in the past crushing season, and all reserves have been wiped off.

“For the current season, 2021-22, the total cost of production of sugar comes to about Rs 3,641 quintal for the sugar mills in the state. This cost is calculated considering the subsidy of Rs 35 per quintal of sugarcane given by the state government. The average selling price is Rs 3,475, thus at this cost of production, the respective sugar mills are operating at a loss,” the association added.  (KNN Bureau)