Chief Minister Yogi Adityanath asked Cane department to ensure that arrears of cane farmers of the 2017-18 crushing season be cleared at the earliest by sugar mills. Yogi also directed officials to speak with the sugar industry and ensure that the payment of arrears was expedited.

During the last season, 119 operational sugar mills purchased cane worth Rs 35,463 crore from farmers and, so far, the industry has paid only Rs 28,633 crore to farmers. The government wanted that the remaining Rs 6,830 crore be paid at the earliest.

For the payment of arrears, the state government had sanctioned a soft loan of Rs 4,000 crore for the sugar industry and, so far, released Rs 1,000 crore as the first instalment. Till date, banks have received loan applications from 64 sugar mills seeking an advance of Rs. 3,873 core.

Besides the soft loan, the state government has provided financial assistance of Rs 500 crore against purchase of cane by sugar mills. Under this, the first instalment of Rs 160 crore has been released of which the payment is underway. In the next week, the amount through Escrow account will be transferred to bank accounts of cane farmers.

Late Monday night, the Chief Minister held a review meeting of sugar mill operations, cane purchase and payments. Seeking details on the sector, Yogi said that in the current year 121 sugar mills were to be operationalised and of this 85 had started cane crushing while the remaining would be operational by November 25.

The Chief Minister said that the welfare of cane growers and strengthening of the sugar industry topped his government’s agenda and exploitation of farmers would not be tolerated. He added that the state government would extend all possible help to the sugar industry for ensuring welfare of farmers.