Madhya Pradesh sugar mills owe farmers huge sums

Sugar mills in Madhya Pradesh have not paid their dues to farmers for the last 13 years. The mills of the Gwalior division in MP owe a whopping amount to cane farmers since 1994-95.

Three cooperative mills in the Chambal region in Dabra, Kailaras and Guna also owe a huge amount.

Dabra Sugar Mill owes Rs 575.45 lakh to farmers for the period of 1994-95 to 1998-99, Rs 0.52 lakh during 2001-02, Rs 1.01 lakh during 2002-03, Rs 1.93 lakh during 2003-04. Another Rs 77.91 lakh as difference amount of state advisory price and minimum support prices is also due on the mill for 2003-04.

The Morena Mandal Sahkari Shakkar Karkhana Maryadit, Kailaras in Morena district has an outstanding bill of Rs 1.12 lakh for 2002-03 and Rs 5.10 lakh for 2003-04.

Admitting that sugar mills owe a thick amount to farmers, agriculture minister Chaudhuri Chandrabhan Singh said: "Dabra Sugar Factory owes Rs 460.18 lakh, Morena Mandal Sugar factory at Kailaras owes Rs 305 lakh and Farmers Cooperative Sugar Mill, Narayanpur, district Guna owes Rs 16.98 lakh to farmers."

The sugarcane issue also dogged the state assembly today. Chief Minister Shivraj Singh Chouhan has said that a new sugarcane policy is in the pipeline and will be launched soon.

"The new policy envisages bridging the gap between growers and millers. Moreover, small scale gur-makers (jaggery) will also be provided enough space in the policy," a government source said adding that a meeting in this regard was convened by the chief minister yesterday.

Meanwhile member of legislative assembly from Congress party also raised the issue in the assembly and informed that farmers are now forced to repay loans and some of them have reportedly committed suicide.

However, the minister has denied any such report but said: "Of the total 471 tractors provided to Chambal region farmers on loans, 51 were attached and 13 of them sold out through auction. Only one FIR (First information report) has been lodged against a farmer."

There are 11 sugar mills in Madhya Pradesh and all of them refused to crush additional cane.

The state has produced 250,000 tonne additional sugarcane this year and an increased acreage of 76,000 hectares against 55,000 hectares of the previous year augurs ill for farmers if the government does not take immediate steps.