Uttar Pradesh (UP) sugar mills have started shutting down early this year due to cane shortage and high diversion to the gur producing units. Bajaj Hindusthan, the country’s biggest sugar producer, has stopped crushing operations at two of its mills.

Pratappur and Rudauli, two of Bajaj’s mills, have closed during the last week, according to a company official. Notably, both have closed with lower crushing compared with last year.

Also Read   Related Stories News Now - Mills, others import 1.2 mt sugar in a month - Amar-promoted company's stock takes a hit - Maharashtra sugar output to rise 6.25% - Govt may allow mills to sell imported raw sugar to other mills - Dadri farmers want more time to return compensation - Raw sugar piles up at ports

Also Read   Related Stories News Now - Markets end flat - Sebi won't settle insider trading through consent - Sail and Burn Standard sign JV to produce wagon components - NHPC posts 28% rise in profit at Rs 2,772 cr for FY12 - SBI Cards to focus growth in tier 2 and 3 centres More

UP is the country’s second biggest sugar producing state after Maharashtra and leading companies like Bajaj Hindusthan, Balrampur Chini and Triveni Engineering have all their operations in the state.

Patodia, who is also the president of the UP Sugar Mills Association, said a number of mills will shut down by month-end since sugarcane availability is low and mills are operating at 60-70 per cent capacity.

Ajit Shriram, director, DCM Shriram Consolidated Ltd, said the company’s mills would start shutting down operations from February 15 onwards. The company runs four mills in UP. “We are faced with acute shortage of sugarcane due to diversion. Our Haryana unit has been operating at just 30 per cent capacity for few weeks,” added Shriram.

Most mills in the state have also registered a lower recovery this year due to early harvesting of plant crop and lack of winter rain. According to industry estimates, sugar production in UP this year will be close to 4 million tonnes compared with 4.05 million tonnes last year.

Owing to the acute sugarcane shortage, the mills have been paying Rs 260-265 a quintal for sugarcane against the State Advised Price (SAP) of Rs 165 a quintal.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end flat - Sebi won't settle insider trading through consent - Sail and Burn Standard sign JV to produce wagon components - NHPC posts 28% rise in profit at Rs 2,772 cr for FY12 - SBI Cards to focus growth in tier 2 and 3 centres

Tags : Uttar Pradesh | sugar mills | Bajaj Hindusthan | CB Patodia |   Read Business news in  Advertisements -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Journey on, We are by Your Side. Click here to know more -  2 Lac Apartments, 1 Lac House / Plots. Click here -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  A Brand New Server at a Price That Fits Your Budget. Click here -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More