Pay farmers' dues in 7 days or face music: UP govt to sugar mills

Move comes at a time when Centre announced sops for industry with a rider that sugar mills should clear farmers' dues

The Uttar Pradesh government has asked sugar mills in the state to clear arrears of Rs 7,500 crore due for farmers for the 2013-14 crushing season. The move comes as the Union government has announced sops for the industry with a rider that mills should clear farmers’ dues.

About 95 private mills account for 91 per cent or Rs 6,883 crore arrears. The state government had allocated Rs 400 crore for clearing the dues of cooperative mills. Besides, the government earmarked Rs 252 crore for  payment of societies’ commission in the UP Budget 2014-15, tabled in the Assembly on Friday.

UP Cane Commissioner Subhash Chandra Sharma on Saturday issued an ultimatum of seven days for the mills to settle the dues. The government would undertake a review on June 28. Of the 119 mills, 23 are run by cooperatives and one by UP State Sugar Corporation Limited (UPSSCL). Only the UPSSCL unit and a cooperative unit had met 100 per cent payment commitments, said sources.

On May 30, the Allahabad High Court, hearing a petition by Rashtriya Kisan Mazdoor Sangathan, had slammed the government and observed the cane commissioner would be held responsible if arrears were not settled by the next hearing in July. The commissioner had been directed to file a status report.