UP sugar mills will operate until cane stock exhaust: Akhilesh

State government would facilitate settlement of sugarcane arrears

Uttar Pradesh Chief Minister Akhilesh Yadav on Thursday asserted that the sugar mills in the state would not close down operations in the current crushing season till there was standing cane crops.

He underlined the state government would facilitate the settlement of sugarcane arrears and ensure the farmers’ payments were made under any circumstances.

He said the cooperative mills were paying cane price regularly and other mills (private units) would also be asked to settle their dues.

In the ongoing 2014-15 sugarcane crushing season, the state mills had collectively produced nearly 6.36 million tonnes (mt) of sugar against 5.91 mt in the corresponding period last year.

Now, 77 mills in UP are still operating, while the remaining had closed down after the cane crop in their respective area had exhausted. However, a section of farmers have alleged some mills had discontinued operations although there was standing crop in the field.

Meanwhile, cane arrears on UP mills has also been rising and was almost Rs 10,000 crore for the current season, although the mills had been allowed to pay a part of their arrears by the end of the season.

The mills blame high cane price in UP coupled with falling retail sugar prices for the malady facing the sector.