A Samajwadi Party leader on Tuesday claimed that the UP government will ‘ensure’ payment of arrears due to cane farmers from private sugar mills latest by 30 September and said the mills failing to do so would invite ‘stern action’.

The state govt will ensure that the dues of cane farmers are cleared by the private sugar mills by this month end, SP leader Sahib Singh said.

Singh also said that in case the mill companies fail to comply with the rules, the process to appoint receivers with the permission of the central government would be started.

‘The state government is committed to safeguard the interests of farmers,’ Singh said, adding, that an additional rebate of Rs 6 per quintal will be granted to the sugar mills on clearing dues to cane farmers latest by the end of this month.

It was reported earlier that an amount of Rs 5,099 crore was pending on sugar mills and if all sugar mills make the payment the state exchequer would have load of Rs 380 crore in providing the above relief.