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The Uttar Pradesh government says it has three million tonnes of sugar seized from private millers which haven’t cleared sugarcane payment arrears to farmers.
This stock is supposed to be auctioned to raise the money but the process is lagging for various reasons. It auctioned 530,000 tonnes of the seized stock in July and the money released for farmers’ payment.
The 95 private sugar mills have collectively paid Rs 11,765 crore against the total dues of Rs 17,366 crore for cane purchased during the 2013-14 crushing season, implying settlement of 68 per cent of the arrears. Since the Allahabad High Court is hearing a case pertaining to the arrears, the government had so far registered a little over 60 First Information Reports with the police and issued Recovery Certificates (RCs) against 52 mills.
Pursuant to the RCs, issued by the state cane commissioner, the respective district administrations had seized the sugar stock for auctioning.
In its affidavit filed at the HC on Friday, the government told the court that as a result of the confiscation, there was a ready stock of about 2.98 mt of sugar to be auctioned. Beside, 230,000 tonnes belonging to cooperative mills was also available.
The 23 cooperative mills had settled 88 per cent of their dues, paying Rs 1,696 crore against dues of Rs 1,929 crore. The lone UP State Sugar Corporation had settled all its dues of Rs 92 crore. This way, the aggregate cane arrears stand at Rs 5,835 crore, a settlement of 70 per cent. All the 119 mills had paid Rs 13,553 crore against total dues of Rs 19,388 crore.
The HC’s next hearing in on Tuesday. The UP Sugar Mills Association is to meet on Monday to decide what to do. During the 2013-14 crushing season, UP’s sugar output dropped by 13 per cent to 6.42 mt.
The sector is the largest organised industry in the state, estimated at Rs 30,000 crore. Cane farming supports the livelihood of about four million farmers.
