Cooperative mills sit over Rs 122 cr of farmers
Though the cane crushing season in the state’s cooperative sugar mills ended in the last week of March, scores of farmers are still awaiting payment in lieu of the produce they had sold to cooperative sugar mills.
Sources said total dues amounting to Rs 162 crore of farmers were still pending towards nine cooperative and two private sugar mills. However, a large share — Rs 122 crore — is pending towards cooperative sector mills alone.
Of the total around 676 lakh quintals of sugarcane crushed in Punjab mills this season, cooperative mills had crushed less than one third — 194 lakh quintals — of the total produce. Such mills procured cane worth Rs 581 crore from farmers.
As per norm, the entire amount should have been deposited into producers’ bank accounts within two weeks of the date of purchase of their produce. However, scores of farmers are still waiting for payments.
Besides, till May 31 two private sector sugar mills hadn’t cleared payments in lieu of sugarcane worth Rs 40 crore purchased from farmers.
Admitting delay in payment, especially in case of cooperative sector sugar mills, Jaswant Singh, Cane Commissioner, Punjab, said, “A large part of payment has already been honoured. The state government is making all efforts to clear pending payments in the next couple of days.”
Sugarcane worth Rs 2,032 crore arrived in total 16 mills – nine cooperative and seven private sugar mills – of the state. Private sugar mills alone crushed sugarcane worth Rs 1,450 crore.
Officials said facing dearth of funds, the Punjab State Federation of Cooperative Sugar Mills (Sugarfed), which manage the cooperative sugar mills, have now approached the government to provide it Rs 122 crore to clear pending payments of farmers.
Short of funds, say officials