Chandigarh, June 21
Cooperative sugar mills have yet to pay over Rs 160 crore to farmers for cane procured during the last crushing season.
The sugarcane crushing season ended around two months ago. Punjab State Federation of Cooperative Sugar Mills Ltd (Sugarfed) - which manages nine cooperative sugar mills currently operational in the state - is now waiting for the government to provide it money to clear its dues.
Sources said that the mills had purchased cane worth Rs 578 crore this year, of which Rs 373 crore was cleared by Sugarfed. Against its demand of over Rs 205 crore from the state, the latter has so far released only Rs 45 crore.
“The federation has no other source to pay the pending payments of farmers. Since we have exploited all our resources, including a bank loan, the rest of the payment can be made only after the state provide funds for the same,” said an officer.
Sources said the federation had forwarded its financial requirements to the government before the completion of the last financial year but the government released an installment of Rs 45 crore in the first week of June. Thereafter, no money has been provided to Sugarfed.
Last year, Sugarfed had cleared dues of Rs 210 crore whereas state government had provided Rs 330 crore to the federation to make payments to the farmers.