Sugar producers threaten to shut mills

KATHMANDU, July 29:

Sugar Producers' Association (SPA) has threatened to shut all sugar mills across the country if the government does not reduce minimum support price of sugarcane.

Speaking at a press meet organized here on Wednesday, officials of the association said the new minimum support price of sugarcane has affected domestic sugar mills. "The sugarcane price was fixed in an unscientific manner and mills are not in a position to pay farmers the rate fixed by the government," Sasikanta Agrawal, president of the association, said. "Domestic sugar mills are suffering huge loss, but foreign sugar mills are flourishing because of the government decision."

The government fixed minimum support price of sugarcane at Rs 460 per quintal couple of months ago after farmers and mill operators failed to reach consensus on the price.

"If the government does not revise the rate, we have no option but to shut down our operations," Agrawal said. "We are prepared to do so."

Raj Kumar Agrawal, vice president of the association, said they had urged the government to fix sugarcane price at Rs 436 per quintal. "But the government fixed sugarcane price at Rs 460 per quintal due to pressure of some political parties," he said, adding, "We cannot accept the rate." He said that the mills will have to suffer loss of Rs 85 per quintal even if minimum support price is reduced to Rs 436 per quintal.

Informing that around 200,000 of sugarcane farmers across the country will be affected if sugar mills shut their operation, another Vice President Diwakar Golchha urged the government to do the needful at the earliest.

Source: Republica