to the industry's kitty and UP government's recent incentives worth Rs 11 per quintal, the gap between the viable price of cane and the SAP fixed by the UP government would still be roughly Rs 31.75 per quintal, said industry executives.
Nevertheless, the Indian Sugar Mills Association hailed the Centre's move. "The industry welcomes the initiatives of the central government to help the sugar industry to face the financial crisis it is going through. It will help the industry clear arrears of farmers," ISMA director general Abinash Verma said. The proposed measures would also help the industry venture into the production of a new product, 'raw sugar', and grab opportunities whenever they are available, he said.
However, he added that the long-term solution for the cash-starved industry would be the implementation of the revenue-sharing formula for cane pricing.