The Uttar Pradesh Government's determination to increase the cane procurement price advised by the State for the current season from Rs 125 to Rs 140 per quintal likely to pose a substantial threat to the earnings of sugar mills situated in the State. Mills in the State are already involved in a court battle relating to the previous year's State Advised Price or SAP of Rs 125 a quintal, having shelled out Rs 110 per quintal the previous season. An upward revision in the State Advised Price (SAP) for the current season likely to imply a substantial spike in procurement costs for the mills.
A higher SAP gives increase to doubts on whether mills in the State will benefit from the firmer sugar prices hoped this season. Domestic sugar prices, which had increased by about 22 per cent between January and September, have cooled about 10 per cent on higher supplies released for the festive season and lower global sugar prices.
A higher SAP gives increase to doubts on whether mills in the State will benefit from the firmer sugar prices hoped this season. Domestic sugar prices, which had increased by about 22 per cent between January and September, have cooled about 10 per cent on higher supplies released for the festive season and lower global sugar prices.
No comments:
Post a Comment