News International Sugar Journal

India – Co-operative sugar mills in Punjab run into losses [Registered]

With sugar selling for less than its cost of production, nine co-operative sugar mills in Indian Punjab have been incurring annual losses totalling Rs 90 crore (U$16.5 million) and worse: have not paid farmers for last year’s sugarcane crop, reports Indian Express. While the cost of production in the mills is Rs 34/kg, sugar is being sold at a loss for Rs 29/kg as the market is flooded with the sweetener. This has resulted in the co-operative mills owing farmers nearly Rs 40 crore (U$7.3 million). Farmers say this is discouraging them from planting sugarcane. Further, they are also not…

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