Uttar Pradesh (UP) based sugar stocks are buzzing after the companies met the Chief Minister (CM) and discussed a host of issues including payment of sugarcane arrears.
In an interview to CNBC-TV18, Abinash Verma, Director General, Indian Sugar Mills Association (ISMA) shared his views and outlook for the sector.
"For the past fifteen years or so, UP government used to fix a very high sugarcane price called State Advisory Price (SAP), which was much higher to what the central government was fixing", he said.
That was the real burden leading to cane price arrears were going up year-after-year and the UP mills were losing a lot of money, he further added.
To explain the need to move to rationalised sugarcane pricing policy was the first thing on the agenda of the meeting with UP CM.
"We are pursuing with the state government to rationalise the sugarcane price policy and also free-up our molasses sale", Verma mentioned.For full interview, watch video...