UP government releases Rs 200 cr for payment of sugarcane arrears

Uttar Pradesh government has released Rs 200 crore for its payment of sugarcane arrears by country controlled co-operative industry sugar plantations to the past 2018-19 crushing period.

While, four of their complete 24 combined units had settled their exceptional, the staying 20 accounted to the outstanding arrears, UP sugar and cane commissioner Sanjay Bhoosreddy stated on Wednesday.

He explained that the authorities had released Rs 200 crore for clearing the outstanding cane cost payment and the amount will be transferred into the farmers’ bank account over the following two days.

Bhoosreddy underlined the authorities had accorded priority to making sure that the payment of cane cost to the nation farmers.

Even since the 2019-20 crushing season is still underway, cane arrears of almost Rs ,000 crore are pending on UP mills for its 2018-19 season. While personal millers accounts for 85 percent of this outstanding, the majority of arrears are owed by components of large players viz. Bajaj Hindusthan, Modi and Simbhaoli groups.

Until Friday, the personal mills had roughly $ 1,700 crore of the total arrears worth Rs two,000 crore, although the combined units owed an outstanding of Rs 300 crore.

UP sugarcane sugar and development businesses minister Suresh Rana had previously told Business Standard he would convene a meeting with the managing of their defaulting mills and request them to clean cane dues.

This past year, the Adityanath authorities had registered police cases against many defaulting mills, such as those possessed by Bajaj Hindusthan, Modi and Wave Groups.

The very first information reports (FIR) were lodged under part 3/7 of the Essential Commodities Act (ECA) 1955 and department 420 and 120 (B ) ) Indian Penal Code (IPC).

In any case, recovery certifications (RC) were issued from several others. The RC entitles the various district government to capture movable and immovable properties, such as sugar inventory, for auction, so the obligations are settled.

The mills had jointly settled Rs 31,000 crore value of sugarcane payments from a total outstanding of Rs 33,048 crore for 2018-19 crushing season together with the personal and combined sector millers accounting for Rs 28,000 crore and Rs two,600 crore of those obligations, respectively.

Rana worried cane payments of over Rs 80,000 crore was made within the past 33 weeks of their present regime, which had been unprecedented in UP and signaled the pro-farmer position of the authorities.

In 2018-19, 119 sugar mills, such as 94 personal, 24 combined along with also a UP State Sugar Corporation unit, had engaged in devastating operations together with the glucose output signal 11.8 million tonnes (MT) in comparison to more than 12 MT in 2017-18.

UP, that will be India’s leading sugar producer, has seen cane region shrinkage of over 4% to two. 68 million hectares (MH) for its forthcoming 2019-20 crushing year from 2.8 MH in the past season.

About the author

Sarah Lacy

Sarah Lacy

Sarah Lacy is a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.
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