DCM Shriram Ltd has become the first miller to make 100 per cent payment to sugarcane growers against the Uttar Pradesh government’s state advised price (SAP) for the 2015-16 crushing season.
The Ajay S. Shriram-promoted company has paid the entire SAP value of Rs 793.44 crore for the cane supplied by farmers to its four mills at Ajbapur (Lakhimpur Kheri district) and Rupapur, Hariawan and Loni (all in Hardoi). Latest data from the Cane Commissioner’s Office in Lucknow shows four other major companies that had, as on Monday, paid at least 90 per cent of the value of their cane purchases at the average SAP rate of Rs 280 per quintal fixed by the UP government for the just-ended season.
These are Balrampur Chini Mills (Rs 1,812.60 crore of payment against SAP value of Rs 1,934.32 crore), Dalmia Bharat Sugar and Industries (Rs 532.91 crore out of Rs 582.73 crore), Dwarikesh Sugar Industries (Rs 540.79 crore out of Rs 593.38 crore) and DCM Shriram Industries/Daurala Sugar (Rs 400.52 crore out of Rs 435.70 crore).
There are four other major companies /groups that have discharged 80 per cent or more of their SAP cane dues: K.K. Birla (Rs 870.47 crore out of Rs 969.59 crore), Wave (Rs 394.05 crore out of Rs 458.16 crore), Dhampur Sugar Mills (Rs 1,090.71 crore out of Rs 1,260.21 crore) and Triveni Engineering & Industries (Rs 1,068.54 crore out of Rs 1,269.40 crore).
“All these companies are likely to make 100 per cent SAP payments by this month-end, while DCM Shriram managed to do it by June-end”, said an industry source. At the other extreme are companies/groups that have not discharged even a third of their SAP dues: UK Modi (Rs 28.27 crore out of Rs 405.34 crore), Mawana Sugars (Rs 200.90 crore out of Rs 610.69 crore), Simbhaoli Sugars (Rs 170.19 crore out of Rs 505.33 crore) and Rana Sugars (Rs 134.90 crore out of Rs 399.93 crore). UP’s (and India’s) biggest sugar miller, Bajaj Hindusthan Ltd, has also paid only Rs 2,054.92 crore or 72.2 per cent out of the Rs 2,847.45 crore payable to its cane growers at the SAP value.
In all, UP millers bought 64.28 lakh quintals of cane during the 2015-16 season (October-September), which was worth Rs 17,999.37 crore at the SAP. As against this, they have made Rs 13,864.98 crore of payments. That still leaves Rs 4,134.43 crore of dues. Cane price arrears as well the SAP payable for the coming season from October could be a major issue in the state that is headed for Assembly elections early next year.