MP to bail out closed cooperative sugar mills

The Madhya Pradesh government has proposed to bail out closed cooperative sugar mills of the state.

There are five government owned and two privately owned cooperative sugar mills and most of them are closed or are in the red.

“The cooperative department is planning to revive the Morena Mandal Sahakari Shakkar Maryadit unit situated in Kailaras (district Morena).The mill is closed since years after posting accumulated losses,” a government official said, adding, “The unit requires working capital of Rs 35 crore to get a fresh lease of life and a proposal has been sent to the state government.”

According to sources the sugar unit has to pay its Rs 18 crore debt to the state government of which Rs 14 crore is to paid as government debt and Rs 4 crore for salaries and other dues of employees.

“A recently elected board meet has decided to pay Rs 94 lakh dues of sugarcane farmers. The unit has also demanded a soft loan against the excise duty it paid in 2006-07 and 07-08, thus it will get Rs 68 lakh,” the official said. Established in 1971-72, the Kailras sugar unit with 1,250 tonnes per day capacity, is closed due to political interference, poor sugarcane acreage and non-availability of funds.