Maharashtra mills in search of transport subsidy quantities to protectionism, says UP sugar business


The letter stated additionally it is requesting the UP authorities to supply the same rebate/ incentive to sugar mills within the state in order that they’ll survive within the market.

As Maharashtra mulls over the demand from the state’s sugar business to grant mills a transport subsidy of `1,500 per tonne for gross sales exterior its borders, the sugar business in Uttar Pradesh has stated such a choice has the potential to disturb commerce within the nation.

CB Patodia, president of the Uttar Pradesh Sugar Mills Affiliation, has written to the secretary, Meals and Public Distribution, that sugar is a vital commodity offered freely with out commerce boundaries from sugar-producing states to consuming states, and a transport subsidy would supply an unfair benefit to Maharashtra.

“Not solely will the sugar sale in UP undergo, the cane value funds to hundreds of thousands of farmers shall be jeopardised,” the letter stated. A unilateral incentive or rebate will vitiate the market dynamics and main sugar-producing states shall have an incredible drawback, it stated.

The letter stated sugar is a extremely price-sensitive commodity and the part of transport value in general pricing determines the market acceptance and geographical location of the client. Historically, UP’s sugar mills promote their produce within the jap and northeastern components of the nation. “Over a interval of three to 5 years, manufacturing volumes have gone up within the state, whereas consumption of sugar has not seen a lot change. As a internet sugar surplus state, it’s incumbent on UP to promote its sugar exterior and into its conventional markets,” it stated.

The letter stated additionally it is requesting the UP authorities to supply the same rebate/ incentive to sugar mills within the state in order that they’ll survive within the market.

“In a free market regime, the place sugar flows freely from one finish of the nation to the opposite finish, what’s the want to protect one’s produce? Secondly, Maharashtra ought to be markets that it has been doing enterprise in historically and that are nearer to it geographically. Why do the sugar mills of Maharashtra wish to enhance their transport expense? What’s the logic in going to markets which might be far off, for which they’re demanding subsidy?” the letter requested.

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