Though the state’s populist policies have created a huge crisis with farmers taking to the streets to demand their arrears of R6,200 crore from loss-making sugar mills, a nervous Uttar Pradesh government is now lodging FIRs against the owners of several large sugar mills.

One general manager of the Mawana Group, arrested last week, has not yet been given bail. Officials of Bajai Hindusthan, one of the state’s biggest mills, say the FIRs are against unit heads and not the promoter. UP cane department officials say around 45 FIRs have been lodged under IPC sections 418, 420, 427, 440, 465, 468, 264, 265 and 120 B.

“We are closely monitoring the situation. The department will be forced to take coercive measures against all those mills which have paid less than 75% of cane dues. We are also contemplating issuing recovery certificates to erring mills and have sought the approval of higher officials for it,” said cane commissioner Kamran Rizvi.

The problem of arrears, not a new one in UP, stems from the state forcing mills to buy cane at much higher prices than are economical – while the central government has advised a price of Rs 170 per quintal, UP says farmers need to be paid Rs 280. The largest loss-making sugar mills in India are, as a result, located in UP.

With almost 70 out of 121 sugar mills closing down for the sugar season, the state government may take coercive steps as more farmers agitate for arrears.

Mills see the recent actions as pressure tactics. “The only reason for arrears piling up is that the sugar industry does not have ready availability of money. It is not our intention to run away by not paying farmers their cane dues. Ours’ is a lifetime partnership with them and we cannot afford to upset them. Their interest is paramount on our minds. All that we need is some time till we can arrange the finances,” said a senior mill official.