UP sugar output breaches three MT

119 operational sugar mills have collectively produced 3.11 MT sweetener by crushing over 35 MT of cane

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Virendra Singh Rawat Lucknow
Last Updated : Feb 10 2014 | 8:19 PM IST
Uttar Pradesh sugar output has breached three million tonnes (MT) in the ongoing 2013-14 crushing season.

According to latest figures, 119 operational sugar mills in the state have collectively produced 3.11 MT of the sweetener by crushing over 35 MT of cane.

However, cane arrears have also been mounting on mills. Currently, total cane dues on mills stand at Rs 4,266 crore, although farmers had been paid nearly Rs 2,550 crore.

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The 95 private mills account for the bulk of arrears and have to clear almost Rs 3,970 crore dues pertaining to the current season.

The 23 functional cooperative units have to settle Rs 295 crore in dues. The UP State Sugarcane Corporation Limited mill has to pay an arrears of Rs 2.96 crore.

Meanwhile, the Centre has announced fair and remunerative price (FRP) for sugarcane for the 2014-15 season raising it to Rs 220/quintal from Rs 210/quintal for 2013-14.

States are free to top up FRP and decide the price that mills should pay cane farmers. The price recommended by the Centre has almost tripled in the last 10 years from Rs 74.50/quintal for the 2004-05 season.

"We have long been demanding that FRP should be the effective price to be paid to farmers," UP Sugar Mills Association secretary Deepak Guptara told Business Standard.

The Supreme Court is already hearing a case, wherein private mills had challenged the power of the state to fix cane price over FRP. The next date of hearing is likely to be by the end of February.

Meanwhile, the Allahabad High Court will hear the case pertaining to the cane dues of the 2012-13 season on Tuesday.

Even after high court directives, almost Rs 550 crore in arrears is pending on private millers in the state. Against dues of Rs 20,539 crore on private units in 2012-13, the private millers have so far settled Rs 19,998 crore.

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First Published: Feb 10 2014 | 8:14 PM IST

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