The Cabinet Committee on Economic Affairs (CCEA) today approved a new formula to calculate production subsidy to sugar mills for the ongoing 2015-16 season after taking into account lower sugar production and exports.
The impasse between farmers and millers over price has delayed the start of cane crushing, which usually takes place at the beginning of November. The longer the situation continues the greater the impact on production will be, though stocks are comfortable for now.
Agriculture minister Sharad Pawar said: "The government is not in a position to give any money."
M Manickam, MD of Sakthi Sugars discusses the possibilities in the sugar-pricing and why he thinks Rs 25-26 is the most comfortable range.