Lockdown: UP sugar mills seek bailout as demand plummets by one mn tonnes

Cane arrears top Rs 14,000 crore for current 2019-20 season

With domestic sugar demand plummeting by a million tonnes (MT) in the current season owing to the lockdown, the Uttar Pradesh private millers have written to Uttar Pradesh chief minister Yogi Adityanath seeking an urgent bailout package for the beleaguered industry.

Owing to the dip in sugar demand and consequent impact on the mills’ cash flows, the farmers’ arrears in UP have already crossed Rs 14,000 crore level. Since the crushing season in UP is expected to continue till the first week of June 2020, the arrears are likely to climb further.

UP Sugar Mills Association (UPSMA) president C B Patodia has