Ending a period of uncertainty surrounding the 2014-15 sugar crushing season in the country’s second-largest sugar producer state, the UP government and the sugar industry worked out a compromise formula wherein the industry has agreed to start the repair and maintenance work in the factories from Tuesday and begin crushing operations at the earliest.
A high-level industry delegation of ISMA president Ajit Shriram, Balrampur Chini MD, Vivek Saraogi, Triveni Sugar and Engineering’s MD and vice-chairman Tarun Sawhney and Dalmia Sugar’s MD Gaultam Damia met the principal secretary, sugar, Rahul Bhatnagar and other senior officials of the state government and came to a consensus that the industry has confidence in the government. It may be mentioned that the UP government had earlier notified that the sugar mills of western UP should start crushing by November 10, while those in the eastern part should start operations by November 15.
“During our interaction with the government today, we realised that the state government is sensitive to our problems. In fact, the government has promised to look into ways of how it can assist us in sorting out our problems,” said an industry source, requesting anonymity.
The government has also agreed to extend the deadline of giving the mills an additional rebate of R6/quintal from September 30 to November 15. It may be mentioned that the state cabinet had decided to give the mills time till September 30 to clear cane dues and promised to give the mills a rebate of R6 a quintal to all the mills which do so within the stipulated time.
“Apart from this, the state government has also agreed to take back the cases and FIRs that it had filed against the erring mills and their promoters which had not cleared their cane dues on time and would also consider giving R3/quintal as additional incentives for the season 2013-14,” he said.