Almost three months have passed since the crushing season began, but sugar mill owners are yet to pay about Rs. 2200 crore due to the farmers in Uttar Pradesh.

 

Deepak Guptara, secretary of Uttar Pradesh Sugar Mills Association, told The Hindu that the record production of sugar had caused prices to plunge to disturbingly low levels, affecting the paying capacity of the sugar mills.

 

“The rate at which sugar was sold when the cane crushing season started in October end was Rs. 3,700/quintal. Right now the rate is Rs. 3,160, almost 20 per cent less than the initial rate. I must mention that the production cost is Rs. 3,450/quintal which means that we are bearing the loss of at least Rs. 290/quintal,” Mr. Guptara said.

 

Suresh Rana, Minister for Sugarcane Development, said the government will ensure that the “dues get paid as soon as possible.”