Amount from the sale of sugar, molasses, bagasse, press mud and ethanol tagged for cane price payment


Lucknow: As per instructions of Hon’ble Chief Minister, Yogi Adityanath to give top priority to clear Cane dues of farmers, the Cane Department, under the guidance of Hon’ble minister Sugar industry and Cane Department, is putting all efforts for speedy Cane price payment.

Providing detailed information in this regard, Commissioner, Cane and Sugar, Shri Sanjay R. Bhoosreddy said that 85 percent amount of sale value of sugar, molasses, bagasse, and press mud produced in sugar mills has been tagged for the cane price payment. The sugar mills where cozen and distillery units are established and are utilising their own produced bagasse and molasses, Instructions have been issued that they will have to pay equivalent amount of 85 percent of the value of molasses and bagasse from the distillery / cogeneration units . 30% of the value of ethanol produced from C-grade molasses has been tagged for the Cane price. The Sugar mills, which are making ethanol from B-heavy molasses, will have to pay 55 % value of the ethanol produced and the mills making ethanol directly from sugarcane juice will have to pay 80 percent of the value of ethanol produced for cane price payment.

He also informed that an “Escrow Account” has been opened in all the Sugar Mills of the State for Cane price payment, which is jointly operated by Sugar Mill occupier and District Cane Officer/SCDI. Instructions have been issued that for those sugar mills which are not having cash credit limits in bank, the Sugar, bagasse, molasses and press mud will be kept in joint custody of D.C.O./S.D.M. and Sugar mills. The 85% of sale value of these products will be deposited in “Escrow Account” for cane price payment.

Shri Bhoosreddy informed that this year some sugar mills are also producing sanitizer, and generating additional income. Therefore, in order to ensure cane price payment to the farmers, orders have been issued that the sugar mills producing sanitizer, 65% of the sale value of ethanol used in the production of sanitizer will have to be paid for cane price payment.

He said that when during the lockdown period the sale of sugar was negligible, then only due to the tagging of sale price of all the products and by-products of the sugar mill Rs.5,954 crore cane price payment to farmers could have been possible during lockdown.

The Cane commissioner also informed that during pandemic of covid-19, the sanitizer and ethanol production facilitated the department in Cane price payment as well as making availability of sanitizer pan India and also for general public at a reasonable price.

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