In the backdrop of the month-long notice served by the Yogi Adityanath government to private sugar mill owners on clearing dues of cane growers by April 23, a delegation of UP sugar mills association met the CM in lucknow on Wednesday. This was the first meeting between the CM and representatives of private sugar mills.
The Chief Minister asked the sugar mill owners to ensure that the payment to the farmers were made within 14 days of the purchase of cane by the sugar mills. Yogi asked the Cane department to review the policy of determining state advisory price of sugarcane and also asked the department to study policy of other cane growing states like Karnataka and Maharashtra so as to ensure payment of remunerative price to farmers.
The CM assured the sugar industry that the state government would extend all possible help for development of the industry and for protecting interests of the farmers. Yogi was informed that the industry has so far cleared 95 percent payments of the farmers.
The CM also directed that the work for construction of new sugar mills in Rasra in Ballia, Sanjhapur, Pilibhit, Pipriach and Munderwa be expedited. He also directed Excise department officials to prepare a proposal for Molasses policy and for disposal of all pending issues of sugar industry.
Soon after taking oath of office on March 19, Yogi Adityanath had asked private sugar mills on March 23 to settle arrears of the farmers within a month. The CM had also warned of strict action against defaulting private sugar mills. The arrears of the present crushing season 2016-17 are over Rs 4,000 crore.
An office bearer of UP sugar mills association said, " It was a courtesy call by sugar industry to the CM and it should not be seen in the context of the April 23 deadline set by the government for settlement of arrears.’’
"The industry is hopeful that it would witness things turning around to the benefit of all stakeholders. There is also possibility of fresh investment coming to the sector," he hoped.
During the 2016-17 season, 116 sugar mills had crushed cane. The season is likely to continue till the last week of April. So far, about half these mills have already concluded their operations and have subsequently shut for the season. The private sector accounts for 91 functional sugar units in UP, followed by the cooperative sector (24) and UP State Sugar Corporation limited (UPSSCl) with a single running unit.