Pending cane arrears: Sugar mills to raise money from banks

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Lucknow: Sugar mills in Uttar Pradesh are struggling to clear cane arrears. They claim to be under financial distress. Now, mills are looking at the bank for financial help.

According to the news report published in Businessstandard.com, cash-starved cooperative sugar mills in Uttar Pradesh will raise nearly Rs 3,650 crore from the banks in the coming 2020-21 sugarcane crushing season to pay farmers for the procurement of the cash crop. The projected loans/cash-credit limit of Rs 3,650 crore is 13 per cent higher compared to the amount of Rs 3,221 crore in the previous crushing season (2019-20). For the cash-credit facility, the state government will stand as guarantor.

Sugar mills in the state are all set to commence the operations, but few of them have not cleared the cane dues. Sugarcane farmers say that due to pending cane arrears they are under financial distress and are unable to meet their daily needs. Mills claim they have been affected by the Covid-19 and low sugar sales.

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