Mawana Sugars closes operation in Uttar Pradesh

Mawana Sugars on Thursday announced the closure of three sugar mills and a distillery in Uttar Pradesh.

The company cited prosecution by the state authorities as the reason behind the closure of the three sugar mills and distillery with effect from March 13, 2015, it informed the BSE.The company also said it is incurring huge losses on account of disparity in sugar cane and sugar prices, which has caused delay in cane price payment.

The sugar mills are located at Mawana, Nanglamal and Titawi besides a distillery at Nanglamal. Due to regular persecution and prosecution of senior officers of the company by state authorities through filing of FIRs, it has become impossible to run sugar operations in the state, it said in a release to the BSE.

The state authorities have been informed of the decision, the firm said.

The Mawana Sugars stock closed 0.60 per cent higher at Rs 8.41 on the BSE.