The sugarcane farmers of Uttar Pradesh are yet to get Rs. ,5975 crore arrears from sugar mills in the current crushing season.

 

Private and corporate owned mills top the list which are yet to pay the farmers the full price. Overall the mill owners have managed to pay about 78% of the total money they owe to the farmers.

 

In total, over 116 mills bought sugarcane worth Rs. 19,076 crore in the year 2016-17 but till February 2 they could pay back to the farmers only Rs. 13,091 crore.

 

Cash crop on West U.P.

 

More than 55 lakh farmers spread across forty districts of western Uttar Pradesh grow sugarcane which is the cash crop of the region.

 

The grim situation of payment to farmers exists even as the turnover of U.P. sugar industry this yearis all set to top the country.

 

The Indian Sugarcane Manufacturers Association, an all India body representing sugar mills from all sugar producing States, has set the target of 85 lakh tonne of sugar production in U.P., which is 40% of the total target of the country.

 

Due to a variety of reasons, including lowering water level and drought-like situation, sugar production target in Maharashtra has gone down from 84.24 lakh tonne in 2015-16 to 46 lakh tonne, which is a little over half of last year production in the State.

 

Bajaj group which owns 15 mills owe over Rs. 2000 crore to the farmers, while Modi group owes about Rs. 300 crores.

 

Deepak Guptara of U.P. Sugarmill Owner's Association told The Hindu that the mills have paid over 78% of the total dues to the cane growers.

 

“The figure of Rs. 5,975 is the money which sugar mills owe to the farmers and would be the dues after 14 days but the actual dues stands at only Rs. 3,666 crore. We have already paid about 78% of the total dues and we are looking forward to pay back to the cane growers as soon as possible,” Mr. Guptara said.