An all-party delegation led by Maharashtra Chief Minister Prithviraj Chavan met Prime Minister Dr Manmohan Singh in New Delhi today on sugarcane price issue. Talking to reporters after the meeting, Chavan said that Prime Minister assured them of proper action iand said government has already formed a committee of Union Ministers Sharad Pawar, P Chidambaram and Ajit Singh to look into the issue.

Sugarcane farmers in the State are demanding higher price for their crop which the mills are not willing to pay. Although sugarcane crushing season began on 1st of this month, almost half of sugar mills remain closed due to the vexed issue.

Export subsidy of five thousand rupees per tonne for 20 lakh tonnes of sugar, creating 50 lakh tonne buffer stock and making it mandatory for oil marketing companies to lift petrol blended with ethanol are among the demands made by Maharashtra to the Centre.

AIR correspondent reports, farmers are also agitating in Uttar Pradesh demanding higher price for their crop even as sugar mills have threatened to suspend crushing operations. The State government has kept unchanged the State Advisory Price at 280 rupees per quintal for the current sugar season. The Centre has fixed 210 rupees per quintal as fair and remunerative price of sugarcane for 2013-14 sugar season.