UP allocates Rs 65 bn in Supplementary Budget to settle sugar mill arrears

The domestic sugar market has been hit by market glut and total outstanding of about Rs 150 bn, of which UP mills account for the highest share at over Rs 104 bn

With Uttar Pradesh's sugar mills being burdened by arrears of more than Rs 104 billion for the 2017-18 crushing season, the Yogi Adityanath government has allocated almost Rs 65 billion in the state Supplementary Budget for their early settlement.   

In the supplementary budgetary grants proposals tabled in the UP legislature on Monday afternoon, the government has sought funds to partly meet the outstanding run up by the private, government and cooperative sector mills, which together number 119.   

The government has sought Rs 40 billion to facilitate soft loans to private mills for meeting their payment commitments, which have been delayed