Ending the deadlock between Uttar Pradesh Government and private sugar mill owners over crushing of sugarcane, millers have agreed to start procuring harvest at Rs 280 per quintal from tomorrow, with some conditions.
Chief Secretary Javed Usmani today told reporters that in a letter sent yesterday the sugar mills association has assured that all private mills would start crushing tomorrow.
He said setting aside their demand of not paying more than Rs 225 per quintal the sugar mills have agreed on the State Advisory Price of Rs 280 per quintal and have promised to start crushing from tomorrow.
Usmani said the mills owners told the government that they were ready to pay Rs 260 per quintal in the scheduled minimum time, but in the wake of drop in sugar price remaining Rs 20 would be paid at the end of the season.
He said the government has accepted the demands and it would also bear the commission, amounting to Rs 500 crore, to be paid to the sugarcane committees. In addition to this, he said the government has exempted millers from Rs 2 per quintal purchase tax benefiting them by Rs 160 crore.
Usmani said the sugar mills would be given rebate in the entry tax which would save them Rs 219 crore.
All district magistrates have been directed to hold meetings with the authorities of the sugar mills in their area, he said, adding that action would be taken against those adopting dilly-dallying tactics. The Chief Secretary said recovery certificates issued against nine sugar mills have been suspended under the current scenario.
