- Welcome to UP, where sugar mills are raring to shut down the operations!
- Out here, sugarcane and sugar prices are not linked unlike what’s been done in Maharashtra and Karnataka.
- Banks are running away from giving loans to mills. Most of the money that is coming from the sale of sugar is going to farmers & mills are getting ~nothing.
- The states can fixe their own cane price, which is much higher than the Centre’s cane price, known as ‘Fair and Remunerative Price’ (FRP).
- But here’s a catch – Mills cannot shut down when they want – they can do so only when the district magistrate allows them to do so.
Posted on | Business Stan