In a letter to chief minister Rabri Devi dated December 4, secretary of the association GC Goel has said since this relief cannot sustain a reasonable price level, the state government should also give a subsidy on the cane price, apart from the statutory minimum price advised by the high court.

Last season, out of the 28 sugar mills in Bihar all 18 government-run mills were closed as they accumulated huge losses and were unable to pay workers their salary. The situation is likely to be similar this year also as none of the government-run sugar mills have started crushing the cane yet although the season has started.

The sugar situation in the current season is bound to suffer because of floods in the entire cane producing belt in the state during themonsoon."Floods make it highly uneconomical to run factories and the paying capacity, both to farmers and workers, is seriously affected," according to Goel.

The letter to the chief minister also pointed out that Uttar Pradesh (UP), realising its situation is the same as Bihar, has announced a package of incentives which includes a subsidy of Rs 3.80 per quintal. In response to the subsidy private sugar mills have agreed to increase the cane price by Rs 5 per quintal, bearing a liability of Rs 1.20 per quintal only. In Bihar, private sugar mills that have started crushing this season are facing problems. In this connection an all-India meet of private sugar mills will be hosted in New Delhi on December 18.

The association has also urged the state government to pursue with the Centre a proposal to curb sugar import or impose a customs duty of not less than 40 per cent to protect the industry.