ISMA on Thursday said no-high level committee is required for sugarcane pricing in Uttar Pradesh. This is because a panel headed by PMEAC Chief C Rangarajan has already given a formula for determining the price, said Avinash Verma, Director General of ISMA.

The organisation reaction came just after Uttar Pradesh Government on Thursday announced that it will set up a high-level panel to look into the issue.

The State's sugar industry told the Government that it cannot take more losses. Last year, the industry’s loss was Rs 3,000 crore against a loss of Rs 1,000 crore in the previous year.

"The industry met losses of Rs 3,000 crore in 2012-13. This shows that price of Rs 280 per quintal is not viable," Verma said in a hurriedly called press conference.

ISMA wants rationalisation of prices and seeks immediate implementation of Rangarajan formula.

The Central Government said it will give tax free loans. But, we do not know how much of it will come to us. The current pricing is fixed based on mere assumption, Verma added.

It is not viable at a price of Rs 280/quintal for anybody -- private, co-operative or public sector, according to ISMA.

The banks have stopped giving working capital loans. Banks including SBI, PNB and Allahabad Bank have said that they will not give loans unless Rangarajan panel recommendations are implemented, Verma reiterated.

The Government can come forward to run the sugar mills themselves at this price. If we are offering this option, then why is the Government lodging FIRs against promoters of sugar mills. Today, the Government offered no relief and we want them to implement Rangarajan recommendations and get out of the politics of fixing prices, Verma said.

siddhartha.s@thehindu.co.in

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