Seeing itself as the only industry that is forced to subsidise sugar prices to consumers, the mills want the ex-factory price to be
fixed at Rs 22 per kg to sustain operations.
Only in the last two months, prices have recovered to touch the Rs 18 per kg mark, South Indian Sugar Mills Association (Sisma) president Rajshree Pathy told reporters here on Monday.
Sisma members, said, from a 50% surplus in production, the last two years saw the sugar production dwindle to 30% deficit. Though prices of crops like rice, wheat and maize have gone up, it is only a hike in sugar price that creates a furore.
In spite of its minimal impact in the overall inflation basket of products, it is a much politicised issue, they added.“Unless sugar prices are maintained at a fair level, it will be impossible for the industry to pay the farmers a fair cane price,” said Ms Pathy.
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