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| Exchange Disseminated Time | Uttam Sugar Mills Ltd has informed BSE that the Company has decided to suspend its operations of the sugar factories in the current Sugar Season 2013-14 and accordingly necessary intimation has been sent to the Cane Commissioner - Uttar Pradesh, Chief Secretary - Uttar Pradesh, Principal Secretary - Department of Sugar and other concern Departments on November 19, 2013. The decision to suspend commencement of sugarcane crushing operations has been taken mainly on account of following reasons:
1. Fixation of unreasonable, unaffordable and irrational State Advised Price (SAP) by the State Government over the last 5 years. The SAP for sugarcane which was Rs. 165/- for the general variety for Sugar Season 2009-10 has been increased to Rs. 280/- for the last Sugar Season 2012-13, it works out to be 70% increase in sugarcane price over last four Sugar Seasons. However, there is no corresponding increase in the sugar price and hence Sugar Mills are incurring heavy losses during the last few years.
2. Request to State Government to fix affordable sugarcane price for the Sugar Season 2013-14 in accordance with the recommendation of the Committee set up by the Prime Minister under the Chairmanship of Dr. C. Rangarajan, Chairman of Economic Advisory Council to the Prime Minister either (a) at the rate of 70% of the revenue realized from sugar, bagasse, molasses and press mud or in the alternative (b) at the rate of 75% of the revenue realized from sugar only (giving 5% weightage to the revenue from the first stage by-products) so that the sugarcane price should have linkage with the sugar price on the basis of established and recognized formula. |
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