New Delhi: Sugar mills in Uttar Pradesh are all set to start sugarcane crushing season. But pending cane arrears in the state have not been cleared yet.
According to the media reports, the sugar mills are yet to pay Rs 8,447 crore to the cane farmers for the previous season that ended on September 30. They paid over 76 per cent of the Rs 35,898 crore due towards cane supplied by farmers. Millers attribute lockdown effect and delay in subsidy payments by the government to the delay in sugarcane payment.
The sugar mills claim sector has not fully recovered from the lockdown. Mills are finding it difficult to sustain as sugar sales are down, which has created liquidity problem for them. Therefore they are unable to clear cane dues.
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