The Hindu Business Line : UP sugar barons to meet tomorrow

The top sugar barons of Uttar Pradesh (UP) are meeting here on Wednesday to formalise a consensus on avoiding any cane price war and not commencing crushing operations in the forthcoming 2006-07 season (October-September) before November.

According to sources, those slated to attend include the Chief Executive of Bajaj Hindusthan Ltd, Mr Kushagra Bajaj, the Chairman and Managing Director (CMD) of Triveni Engineering & Industries, Mr Dhruv M. Sawhney, the CMD of Simbhaoli Sugar Mills, Mr G.S. Mann, the Managing Director of Dhampur Sugar Mills, Mr Ashok Goel and the CMD of DCM Shriram Industries, Mr Tilak Dhar.

Besides them, single-mill owners such as Mr Shailendra Mohan of the Dainik Jagran Group (which runs the Shakumbari Sugar & Allied Industries at Saharanpur) and Mr Rajat Lal of Sir Shadilal Enterprises Ltd (Shamli factory) would also be present at the meeting, which is said to be the initiative of Mr Kushagra Bajaj.

"They are all companies that have units in western UP, where competition for cane is most intense", the sources pointed out. In recent seasons, mills had been starting crushing in October itself, so as to source maximum cane and benefit from the bull-run in sugar. Much of the cane crushed during October-January in UP is the `ratoon' crop that grows from the stubble of the previously-harvested plant cane. Cold conditions prevailing till January means that the new plant cane ripens for crushing only from February.

"Since mills began crushing one month earlier, the ratoon crop got exhausted by the third week of December. So, they used to get desperate and bid up prices to secure supplies", the sources said. The point that would be stressed at the Wednesday meeting is that there is enough cane for everyone this time, as both area and yields are higher. "All mills would pledge not to launch any pre-emptory cane war, notwithstanding assembly elections early next year", they added.