Centre's move to end sugar sector impasse

The Union food ministry is expected to impress upon Uttar Pradesh sugar mill owners - who have threatened to shut down operation due to mounting cane arrears - that all efforts should be made to ensure swift payment of arrears to state's farmers.

Officials in the know said the ministry, which has called a meeting between mill owners and representatives from the state government on Thursday to break the impasse, is of the firm opinion that any further measure to enable smooth clearance of cane dues could only be taken up after the arrears accruing to the 2013-14 sugar season that ends in September are cleared.

UP mills owe about Rs 5,000 crore to farmers and have been unable to make payments because of high sugarcane prices fixed by the state government.

Food Minister Ram Vilas Paswan, in an interview to Business Standard last week, had said it was the responsibility of the state government to ensure mills make quick payment to farmers, as the prices had been fixed by them.