Surge in sugar prices gives cane growers reason to smile
SWEET RETURNS Pvt, coop mills have already started disbursement of payment
KARNAL: Sugarcane growers of the region have a reason to smile as all private and cooperative sugarmills of the region have started disbursement of payment to them for their produce.
With prices of sugar having crossed ₹40 a kg, the development has boosted the financial condition of the cooperative sugarmills and the mills are likely to earn profit for the first time.
“Sugarmills have already started the payment process of sugarcane farmers. Payments of sugarcane crushed before December 31 has already been paid,” said Hawa Singh, managing director of Shahbad Cooperative Sugarmill.
“This is a good news for the cooperative sugarmills as the prices of sugar are around ₹40 a kg ,and if prices remain stable, our sugar mill will earn a profit of ₹25-30 crore this year,” Singh said, adding that cooperative mills will see profit for the first time and that this will help the farmers.
Similarly, Shakti Singh, managing director of Kaithal Cooperative Sugarmill, said the mill was making payments to farmers without any delay.
“It is for the first time that the mills are making timely payments. This development will encourage farmers to switch to sugarcane,” Desh Raj, a farmer of Karnal district, said.
Haryana minister of state for corporation Manish Grover has already assured that for the first time all cooperative sugar mills of the state will earn profit as the state government had taken several steps in this direction.
The financial condition of 10 cooperative sugarmills has been dwindling for the past several years and the losses to these mills are pegged at around ₹2,500 crores.
Due to poor performance and
WITH PRICES OF SUGAR HAVING CROSSED ₹40 A KG, THE DEVELOPMENT HAS BOOSTED THE FINANCIAL CONDITION OF THE COOPERATIVE SUGARMILLS, WHICH ARE LIKELY TO EARN PROFIT FOR THE FIRST TIME
delay in payments, these mills have failed to encourage farmers towards sugarcane: In 2015-16, cooperative sugar mills crushed 2.95 lakh quintals of cane against 320 lakh quintals in 2014-15 and 328 lakh quintals in 2013-14. Also, three private sugar mills — Saraswati Sugar Mills Ltd, Yamunanagar, Naraingarh Sugar Mills Ltd and Bhadson Sugar Mills in Karnal — that were against the hike in state advisory prices of sugarcane, which were fixed at ₹320, ₹315 and ₹ 310, have also started payment to farmers without any delay.