 "UP cane arrears rise to Rs 6,178 cr")
According to UP Sugar Mills Association (UPSMA), while the Scheme, meant as a relief to mills, had still not started, only Punjab National Bank had given its in principal approval.
So far, UP mills had paid Rs 3,565 crore to sugarcane farmers against total payable arrears of Rs 9,743 crore, which pegs payment percentage to a meagre 37 per cent.
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Actually, the arrears are much higher at Rs 12,659 crore. However, the state government had allowed mills to pay Rs 20 per quintal of cane at the end of crushing season, which decreases their net liability to Rs 11,744 crore.
Besides, the mills also get 14 days to settle dues after cane is received at mill gate, which brings down the arrears to Rs 9,743 crore. The 95 private mills account for the bulk of payable arrears at Rs 5,747 crore.
UPSMA secretary Deepak Guptara said the export of raw sugar/sugar under the incentive package was yet to start. “Any effect on sugar movement will be seen only after the exports start,” he noted.
Meanwhile, UP sugar production has reached 4.12 million tonnes (mt). The 119 operational mills had collectively crushed 45.86 mt of cane, with recovery percentage standing at 8.98 per cent, better than last year. During 2013-14, the UP cane price stands at Rs 280/quintal, wherein the millers have been allowed to pay in installments of Rs 260 and Rs 20.
Earlier, the Centre had announced Fair and Remunerative Price (RFP) for sugarcane for 2014-15 season raising it to Rs 220/quintal from Rs 210/quintal for 2013-14. The respective state is free to top up FRP and decide price that mills must pay to cane farmers. The price recommended by the Centre has almost tripled in the last 10 years from Rs 74.50/quintal for 2004-05 season.