UP sugar mills to pay Rs 2,400 cr by June 15

Defaulters to face strict action

Uttar Pradesh’s sugar mills have to pay about Rs 2,400 crore to the state’s farmers by June 15, according to an order of the Allahabad High Court. It asked the mills to clear 25 per cent of total arrears by this date.

Private mills have to clear Rs 2,166 crore, with the remaining amount to be cleared by the cooperative and government-owned mills. Private millers collectively owe about Rs 8,666 crore to farmers, based on the state sugarcane price of Rs 280 per quintal for the 2014-15 crushing season.

The major sugar companies operating in UP are the major defaulters, with total dues of Rs 7,356 crore. They have been told to pay Rs 1,839 crore by June 15. Standalone mills with arrears of about Rs 1,310 crore have to pay Rs 327 crore by June 15.

Recently, UP Cane Commissioner Subhash Chandra Sharma had told the millers to abide by the HC order else a First Information Report would be lodged and action would be taken under Sugarcane Control Order.

Hearing a petition, the HC on May 27 had ordered the cooperative and government mills to settle their part of cane arrears in the ratio of 25 per cent each by June 15, June 30 and July 15. The next date of hearing in the case is July 28, when the court would decide on the remaining portion of the dues.

Likewise, private mills were directed to settle 25 per cent dues by June 15 and 75 per cent dues by July 15, while observing the state government had enough powers to deal with defaulters.

Sharma had also fixed the target of arrears to be settled by the mills for the subsequent dates of June 30 and July 15, in accordance with the HC order.

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

Meanwhile, the UP crushing season is over, with sugar output standing at around 7.10 million tonnes and sugar recovery reaching 9.55 per cent compared to 9.27 per cent last season.