New Delhi: Presently sugar mills are facing a steep rise in the off-season maintenance and repair cost. This cost has shot up by 40-60 per cent for different sugar mills owing to a spurt in steel and iron prices.
It is likely to shoot up to Rs 8 crore this time, said the source. Flat steel product prices have gone up by 17 to 24 per cent since April 2007 while long products like bars and rounds have appreciated 50 to 60 per cent over the same period. Generally, sugar mills run between October to April every year, which is the crushing period and are shut during rest of the year.
After the crushing comes to an end, mills need to undergo repair in order to resume crushing in the next season. The usual increase every year used to be in the range of 8-10 per cent. The company spent Rs 9 crore on maintenance of its 3 mills last year. It expects this to go up to about Rs 12 crore this year.
It is likely to shoot up to Rs 8 crore this time, said the source. Flat steel product prices have gone up by 17 to 24 per cent since April 2007 while long products like bars and rounds have appreciated 50 to 60 per cent over the same period. Generally, sugar mills run between October to April every year, which is the crushing period and are shut during rest of the year.
After the crushing comes to an end, mills need to undergo repair in order to resume crushing in the next season. The usual increase every year used to be in the range of 8-10 per cent. The company spent Rs 9 crore on maintenance of its 3 mills last year. It expects this to go up to about Rs 12 crore this year.
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