Lucknow: At present, sugar mills in Uttar Pradesh owe more than Rs 4,000 crore to sugarcane farmers. Millers have begun the preparation to commence the crushing season. According to the state government’s projection, in 2019-2020 sugar season, 121 sugar mills may participate in cane crushing. In 2018-19 sugar season, total 119 state mills, including 94 private, 24 cooperative and a UP State Sugar Corporation Limited (UPSSCL) mill, had participated in the crushing operations.
Sugar mills in Uttar Pradesh are saddled with surplus sugar; therefore, they are unable to clear cane dues. International prices are also not so favourable, which can aid them in increasing sugar export. Recently addressing a rally on Sunday, Uttar Pradesh chief minister Yogi Adityanath said, “The sugar prices in the international market are ruling at Rs 17 per kg. Naturally, the state mills are not able to export the commodity.”
Yogi stressed that the government had taken various steps to improve the financial condition of sugar mills. To reduce the sugar surplus, the government had announced financial assistance on sugar export of 60 lakh tonne for 2019-20 sugar season. The policy involves an export financial assistance of Rs 10,448 per metric tonne (mt) to sugar mills. The total estimated expenditure government will bear Rs 6268 crore.
Sugarcane farmers in the state are worried as their past dues have not been cleared yet, and the new season is about to commence soon.
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