Punjab seeks hike in sugar levy price to revive sugar mills

New Delhi, May 8 (UNI) Punjab government has sought increase in the price of levy sugar in a bid to revive the sagging fortunes of cooperative sugar mills; six of which have shut because of serious problems faced by them.

The State government also sought Rs 20 per quintal bonus on sugar cane to help the struggling peasantry as also to enable it diversify.

State Cooperation Minister Captain Kanwaljit Singh, during a meeting with Agriculture and Cooperation Minister Sharad Pawar here today, said price of levy sugar at Rs 1,284.17 per quintal, fixed three years ago in 2003-04, is far less than the actual cost of production which, he said, is around Rs 2,000 per quintal. Revival of sugar mills and production of ethanol will also help in meeting the engery needs, he added.

He also urged Mr Pawar to announce a bonus of Rs 20 per quintal of sugarcane to encourage farmers to diversify. State-advised price of sugar cane in Punjab is Rs 132 per quintal.

Apprising him of various measures taken by the State government, the Minister said cooperative banks are providing crop loan at seven per cent and flow of agri-credit to farmers, too, has increased.

A Punjab government spokesman said on the Minister's request Mr Pawar has agreed to be the chief guest at the national conference of state cooperation ministers to be held in Chandigarh in July.

UNI