Khanduri offers sops to sugar mills

The Uttarakhand government has announced a package of Rs 47.58 crore as immediate relief to farmers and bailout for the loss-making sugar mills in the state.

An announcement on this was made here last evening by Chief Minister BC Khanduri, who said he was expecting more sops from the Centre in this regard. The package of Rs 47.58 crore will be given to sugar mills, both in the private sector as well as co-operative sector.

Out of the Rs 47.58 crore, Rs 6.51 crore would be given to Nadehi mill, Rs 3.95 crore to Bajpur mill, Rs 8.31 crore to Gadarpur mill, Rs 13.22 crore to Sitarganj mill, Rs 5.59 crore to Kichcha mill and Rs 9.96 crore to Doiwala mill.

All these mills were reeling under the burden of burgeoning dues of the farmers since the sugar price began slumping early this year.

"The assistance is being given as sugar mills are finding it difficult to pay back the dues to the farmers," a top official said. With the government aid, Khanduri said, the sugar mills would be able to pay back the farmers dues till August 16, 2007.

Amid the problem of excess output being faced by mills, the Uttarakhand government has welcomed the Centre's move to convene a meeting of major sugar-producing states shortly to work out a mechanism for aligning cane prices with sugar prices.

A group of ministers (GoM) has endorsed a proposal by the food ministry to convene a meeting of major sugar-producing states to deal with the problems arising out of fixation of high state-advised prices (SAP) in an arbitrary manner by different state governments.

The GoM has recommended that a proposal to rationalise cane prices may be brought before the Cabinet Committee on Economic Affairs, the official said.

The GoM was set up under External Affairs Minister Pranab Mukherjee to look into the problems of the sugar industry and suggest relief measures for the mills as well as cane farmers.

According to the Sugarcane Control Order, the Centre is authorised to fix the statutory minimum price (SMP) to be paid by sugar mills.