UP private mills owe Rs 237 crore to cane farmers

Private sugar mills in the state owe cane farmers Rs 237 crore for the current, 2009-10 crushing season (which runs from October to September). While 72 of the 92 private mills owe none, the remaining 20 make for the entire debt.

UP sugarcane development and sugar industry minister Naseemudding Siddiqui told the legislative assembly the government was exerting pressure on the private millers to clear the dues. Under the rules, the cane commissioner issues notices and recovery certificates (RC) against defaulting mills.

During the last season, UP millers, private and public sector units, had made a record payment of Rs 12,000 crore to the farmers, up from Rs 5,900 crore in the earlier season.

Siddiqui said the government was not considering any special package for farmers to augment cane production. UP is the coutnry’s second largest sugar producer after Maharashtra.

During the 2010-11 season, cane acreage in UP is likely to rise by 20 per cent to 2.15 million hectares. In 2009-10, sugar mills have produced about 5.2 million tonnes of sugar, compared to 4 million tonnes in 2008-09.

Total co-generation (of power, using bagasse reside from cane crushing) by state sugar mills was estimated at roughly 300 Mw. The mills are allowed to sell power to state-owned UP Power Corporation Ltd.