With sugarcane arrears standing at about Rs 9,000 crore for the 2014-15 crushing season, the Uttar Pradesh (UP) government has summoned the sugar barons operating mills in the state for some straight talk. UP Chief Secretary Alok Ranjan would chair the meeting here on Friday.
Top sugar firms operating in UP include Bajaj Hindusthan, Balrampur Chini, Birla, Dalmia, Modi, etc. For the current crushing season, sugarcane dues amount to Rs 20,640 crore (excluding interest on arrears), against which the mills have collectively paid only Rs 11,500 crore so far. Recently, a delegation of UP cane societies federation had met Chief Minister Akhilesh Yadav and urged for facilitating farmers' payment, which is not forthcoming despite some tough posturing by the government and the directives of the Allahabad High Court. Yadav had directed Ranjan to convene a meeting of the private mill owners to ask them to settle the dues.
Last week, the state government had filed a first information report (FIR) against several private mills over non-payment of dues. During 2014-15, about 75 FIRs have been lodged against them during the crushing season, which has already rounded off.
The high court had on May 27 directed the mills to settle 25 per cent, 50 per cent and 75 per cent of their arrears by June 15, June 30 and July 15, respectively.
However, the mills could collectively pay less than Rs 500 crore of the stipulated payment of Rs 2,400 crore by June 15, prompting the state government to file FIRs against top defaulters.
Meanwhile, UP cane commissioner Subhash Chandra Sharma has issued fresh notices to the mills over arrears. "We want to ensure speedy settlement of cane arrears," he told Business Standard, while declining to comment on the specifics of the June 26 meeting to be chaired by the chief secretary.
He lamented the average payment by UP mills stood at under Rs 155 per quintal against the state cane price of Rs 280 per quintal, although "the state government had been accommodating towards sugar industry and also provided sops".
The state mills have been expressing their inability to meet the payment deadlines in the wake of the purported falling sugar prices and high cane price in UP.
Even the announcement of Rs 6,000 crore soft loan to mills had failed to enthuse them since they were unsure of their repayment capacity from the second year of taking the loan. The UP sugar output this year stands at 7.1 million tonnes.
Top sugar firms operating in UP include Bajaj Hindusthan, Balrampur Chini, Birla, Dalmia, Modi, etc. For the current crushing season, sugarcane dues amount to Rs 20,640 crore (excluding interest on arrears), against which the mills have collectively paid only Rs 11,500 crore so far. Recently, a delegation of UP cane societies federation had met Chief Minister Akhilesh Yadav and urged for facilitating farmers' payment, which is not forthcoming despite some tough posturing by the government and the directives of the Allahabad High Court. Yadav had directed Ranjan to convene a meeting of the private mill owners to ask them to settle the dues.
Last week, the state government had filed a first information report (FIR) against several private mills over non-payment of dues. During 2014-15, about 75 FIRs have been lodged against them during the crushing season, which has already rounded off.
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Private mills account for the bulk of these arrears, since they comprise 94 of the 118 functional units with the cooperative and government sector mills constituting 23 and one unit, respectively.
The high court had on May 27 directed the mills to settle 25 per cent, 50 per cent and 75 per cent of their arrears by June 15, June 30 and July 15, respectively.
However, the mills could collectively pay less than Rs 500 crore of the stipulated payment of Rs 2,400 crore by June 15, prompting the state government to file FIRs against top defaulters.
Meanwhile, UP cane commissioner Subhash Chandra Sharma has issued fresh notices to the mills over arrears. "We want to ensure speedy settlement of cane arrears," he told Business Standard, while declining to comment on the specifics of the June 26 meeting to be chaired by the chief secretary.
He lamented the average payment by UP mills stood at under Rs 155 per quintal against the state cane price of Rs 280 per quintal, although "the state government had been accommodating towards sugar industry and also provided sops".
The state mills have been expressing their inability to meet the payment deadlines in the wake of the purported falling sugar prices and high cane price in UP.
Even the announcement of Rs 6,000 crore soft loan to mills had failed to enthuse them since they were unsure of their repayment capacity from the second year of taking the loan. The UP sugar output this year stands at 7.1 million tonnes.