The Allahabad High Court has asked sugar mill owners in Uttar Pradesh to settle 75 per cent of cane arrears to farmers by July 15. Mill owners owe Rs 10,000 crore.

The consolidated dues of private, cooperative and government mills includes interest dues of Rs 260 crore, based on the state sugar price of Rs 280 a quintal.

Hearing the case, the high court asked the cooperative and government mills to settle their part of the arrears in the ratios of 25 per cent each by June 15, June 30 and July 15, respectively. The decision on the remaining portion would be considered on the next date of hearing on July 28, the court said in the interim order.

Likewise, the private mills have been asked to settle 25 per cent of their dues by June 15. The court observed  private millers should also settle 75 per cent of their dues by July 5.

Private mills account for the major portion of arrears (Rs 8,900 crore, including interest payable of Rs 240 crore). There are 118 operational private mills in Uttar Pradesh.

Likewise, the 23 cooperative and one Uttar Pradesh State Sugar Corporation Limited unit account for Rs 1,000 crore and Rs 25 crore, respectively.
 

The state government informed the court it was mulling a new policy to support the beleaguered sector. The court said the state should bring the sugar industry on board before finalising this.