Himalayan News Service

New Delhi, January 1

The Indian Sugar Mills Association (ISMA) has decried the government decision to hike the statutory minimum price of sugarcane by Rs 7.50 Indian Currency (IC), raising the price to Rs 73 IC per quintal.

Expressing shock, ISMA president Vivek M Pittie said that the price hike for the 2003-04 sugar season till September announced earlier this week "is simply un-payable and not within the means of the sugar industry".

Due to the current high sugarcane price fixed by the centre and the much lower sugar price, "the industry has suffered unbearable loss of over Rs 50 billion IC in the last two years", ISMA said in a statement today.

The ongoing tussle over the statutory minimum price has led to several sugar mills owing farmers over Rs 20 billion IC in arrears.

The prices have been hiked on the recommendation of the Commission for Agricultural Costs and Prices (CACP).