Sugar mills fail to clear cane dues despite strict order

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Rampur: Sugarcane farmers claim that despite the orders issued by the Allahabad High Court and the state government, the sugar mills in Uttar Pradesh are not paying the pending cane arrears. They are worried as the new crushing season almost started but mills have yet not paid the dues.

According to the reports, in Rampur district, two sugar mills owe around Rs 33 crore rupees. Same is the condition in other districts as well in the state.

Issuing warning against the defaulter sugar mills, UP government had set a deadline of October 31 to pay all the arrears of sugarcane farmers. But mills failed to pay the dues. Commissioner, Sugar and Cane, Sanjay R. Bhoosreddy issued a stern direction to sugar mills to clear all cane dues before starting the crushing season.

The rule mandates that sugarcane amount should be deposited to the farmers’ bank accounts within 14 days after the sugarcane harvest is handed over to the factory owners, but the mills failed to do so. Sugar mills citing depressed sugar prices and scarcity of money as a reason in delay in clearing the cane dues.

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