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India’s Uttar Pradesh--the second largest sugar producing state in India—may run out of sugar mills by the end of next week to two mills!
08 Apr 2011
MUMBAI (Commodity Online): India’s Uttar Pradesh--the second largest sugar producing state in India—may run out of sugar mills by the end of next week to two mills!

There were more than 100 sugar mills in the state, but with sugar prices declining and competition from state of Maharashtra in sugar processing accelerating, sugar mills in Uttar Pradesh are closing down. Maharashtra is the biggest producer of the sweetener.

Uttar Pradesh, being a land-locked state, had to depend on Maharashtra for exports; sugar mills in Uttar Pradesh purchased sugar from Maharashtra mills and exported the same from Mumbai Port to avoid incurring logistical costs.

As of now, according to The Economic Times, only two dozen mills in UP are operating; that too in under capacity. By the end of next week, they too may close down, leaving two mills in western Uttar Pradesh to operate.

Also, the state is likely to miss the 6 million tons production target and may end up producing 5.88 million tons only.


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