Allahabad HC seeks report on UP sugarcane crushing status

Cane commissioner asked to give mill-wise details of quantum of cane crushed, sugar production, proceeds from sale, payment to farmers

The Allahabad High Court on Tuesday directed the Uttar Pradesh government to file a status report on sugarcane crushing in the current 2014-15 season.

The state cane commissioner has been asked to give the mill-wise details of the quantum of cane crushed, sugar production, proceeds from sale, payment to farmers, etc.

While the court fixed May 19 as the next date of hearing, the affidavit by the cane commissioner would be submitted by May 17.

Last week, the state government had directed the mills to clear their dues by May 5 or face strict action.

Meanwhile, the HC has directed the Mawana and Modi groups to clear cane farmers’ dues pertaining to the 2013-14 season. Mawana and Modi groups carry arrears of nearly Rs 133 crore and Rs 44 crore, respectively.

The HC asked the Mawana group to settle Rs 30 crore by April 30 and Rs 50 crore before the next date of hearing. The Modi group has been directed to clear Rs 20 crore by April 30 and the remaining Rs 24 crore by May 18.

Other private mills with arrears for the last crushing season have also been directed to clear their dues.

The sugar output in the current season is likely to cross seven million tonnes (MT), with production touching almost 6.90 MT. However, arrears for the season are rising and is already more than Rs 6,500 crore.

About 75 of the total 118 mills in UP have wrapped up their operations and most mills are likely to wrap up their crushing season by April-end.

The private sector accounts for 94 units of the total 118 units in UP. The cooperative sector comprises 23 units, while one unit is owned by the UP State Sugar Corporation Limited.

The sugar industry blames falling sugar prices and higher cane price for the crisis. The industry also blames the glut in international market for the subdued export market.

At the start of the crushing season, UP had retained cane price at Rs 280 a quintal, while allowing mills to pay at Rs 240 a quintal upfront and deferring payment of the remaining Rs 40 a quintal to the end of the season.