Maharahtra sugar mills seek subsidy to compete with mills in UP


Millers are seeking subsidy claims against railway receipts on dispatches of sugar on the grounds that they are losing market share to Uttar Pradesh.

Sugar millers from Maharashtra are planning to approach Prime Minister Narendra Modi and Union minister Nitin Gadkari to seek subsidy of Rs 150 per quintal on domestic sale of sugar so that they are able to compete with mills from Uttar Pradesh.

The decision was taken at a meeting of sugar millers and stakeholders called by Maharashtra deputy chief minister Ajit Pawar to discuss issues related to the sugar sector. Millers are seeking subsidy claims against railway receipts on dispatches of sugar on the grounds that they are losing market share to Uttar Pradesh.

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Prakash Naiknavare, MD, National Federation of Cooperative Sugar Factories, said mills from Maharashtra have lost their traditional market share in the north and northeast to mills from Uttar Pradesh after the state overtook Maharashtra in sugar production. “Mills from Uttar Pradesh produce ‘M’ grade of sugar which commands a premium of Rs 1.5 per kg, and since there is no grade-wise minimum support price (MSP), the ‘M’ grade is sold at the same price as ‘S’ Grade,” he explained.

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