Strict guidelines issued to prevent misuse of facility granted for distribution of agricultural inputs to sugarcane farmers by sugar mills

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Lucknow: Commissioner, Cane and Sugar U.P. Shri Sanjay R. Bhoosreddy said that, in the interest of cane farmers, sugar mills have been permitted to provide interest-free distribution of agri-inputs required for cane cultivation such as cane seed, pesticides, fertilizers, machinery, etc. but certain restrictions also have been imposed to ensure timely availability of agricultural inputs to sugarcane farmers and misuse of permission can not be done by sugar mills in their personal interest.

Giving information about the instructions issued for the distribution of agricultural inputs, Shri Bhoosreddy said that the distribution of agricultural inputs will be limited to the permissible quantity required to their actual sugarcane area and only will be provided as per the requirement and consent of the farmers. Sugar mills will not distribute agricultural inputs to a farmer without his consent and operated as a target based commercial activity for profit making.  The responsibility for the payment of the GST payable as per rules on agricultural inputs under distribution will be owned by concerned sugar mill. If it is found that any distribution is done without payment of GST in the state treasury then the entire responsibility of the concerned sugar mill will be determined and action will be taken against them as per the rules.

It has also been directed In the guidelines issued by the Cane Commissioner, that the sugar mills, which are allowed to distribute agriculture inputs and adjustment of their price from cane price dues of that farmer will also have to give a bank guarantee of five lakh rupees. If any complaints regarding misuse of the given permission by sugar mills are received from any source and found to be correct in the investigation, then the bank guarantee will be forfeited and permission for distribution of agricultural inputs will also be withdrawn.

Shri Bhoosreddy also informed that permission granted for agri-inputs distribution with certain restrictions will facilitate interest free agricultural investments by sugar mills, per hectare cane productivity will be increased and sugarcane farmers will also be able to help in increase their income and reduce the costs.

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