Ajit Singh blames SP for UP sugar crisis

In what is a being played across as a national level blame game, Aviation Minister Ajit Singh has said Samajwadi Party-led Uttar Pradesh government is responsible for the dark hour in UP’s sugar industry.

Also read: UP sugar crisis: Price over Rs 225/qnt unviable, says ISMA
Speaking to CNBC-TV18, Singh said the responsibility for the crisis is wholly that of the state government.
“State government is totally oblivious of what is happening, they have not taken any initiative, they have more than Rs 2000 crore of last year’s payment due,” he adds.
Quoting mandatory ethanol blending and sugar purchase tax, Singh says all political parties will have to be consulted for solving this issue, something the UP government should have done a long time back. Below is the edited transcript of Singh’s interview to CNBC-TV18. Q: What will be done to solve this sugar crisis?
A: It is the responsibility of the state government that mills start in time because not only it is a question of sugar being produced but they also sow wheat in that field. State government is totally oblivious of what is happening, they have not taken any initiative, they have more than Rs 2000 crore of last year’s payment due. Q: You had in your communication with the Prime Minister (PM) specifically sought sops for exports and at the same time you wanted higher import duties. Do you feel if the government agrees to these the immediate crisis could be averted somewhat?
A: I don't think that would help immediately because it will take time before the export subsidies there and we also have to keep in mind the international prices. In 2007-08 the government had taken care of the interest payments.
Additionally, more than 10 years ago, the government made 10 percent Ethanol blending mandatory and that hasn’t been met yet. So, if the government insists that you have to have 10 percent ethanol and another 25-30 lakh tonnes of sugar. Furthermore, there is a purchase tax on sugar in UP which should be abolished. Q: The immediate demand right now is on pricing, they want the Rangarajan formula also to be adopted, is that possible for the state government also to exceed to that demand?
A: Rangarajan formula has not been accepted by any state yet. They say Karnataka assembly has done something but they have not implemented it yet and there are problems with it. I agree that there must be linkage in pricing of sugar but there are some problems with the Rangarajan formula and then it will take time, we will have to consult all the farmers organisation, we have to consult all political parties which UP government should have started sometime back.