Meerut: Industry major Mawana Sugar Limited (MSL) on Thursday wrote to the district cane commissioner, claiming that coercive measures taken to extract arrears from mill owners have made the sugar business less lucrative and are impeding functioning of factories. 

"Due to FIRs and coercive actions against employees, many officials including managing directors, engineers and unit heads have left the company and some more are in the process of quitting. In spite of our best intentions to run the factory smoothly, no official is happy working with the sugar industry," an official statement from MSL read. 

The statement was prompted by directives given by district cane officer AK Shukla, who on Wednesday had said, "In a memorandum submitted to the district magistrate on Tuesday, farmers claimed that their families are on the brink of starvation. They cannot afford to pay for basic needs such as health and education. You are requested to clear their dues at the earliest or face action for betraying farmers, economically oppressing them and withholding their arrears on purpose." 

The statement further read, "It is, therefore, requested to kindly allow us to clear payment for the 2014-15 crushing season by selling present sugar stocks and utilizing sugar stocks to be produced in 2015-16 till the receipt of various claims, financial assistance from the government." 

"MSL defaulted in payments for the 2013-14 crushing season, which was monitored by the honourable Allahabad high court. The court was informed that MSL does not have wherewithal to pay the arrears, the dues except for the sale proceeds from sale of sugar stocks of 2014-15. The HC was pleased to allow us payment of cane dues and payment for 2013-14 was cleared from the sale of 2014-15 stocks," MSL added. 

The company said the industry was in a state of crisis. "It is a fact that sustained surpluses of production over domestic consumption in the last four years have led to hugely subdued prices both in domestic as well as international markets. This has stressed the liquidity position of sugar industry, leading to a build-up of cane arrears."