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News
Plan to provide bank loan to sugar mills to pay off cane farmers
Date:
25 Mar 2017
Source:
The Times of India
Reporter:
TNN
News ID:
6529
Pdf:
Nlink:
Lucknow: The BJP government in UP is contemplating to have bank loans provided to erring sugar mills for payment of cane arrears due to the farmers. A proposal to this effect is likely to be put forth at a high level meeting scheduled to be convened by the cane development department on Monday.
According to latest records of the cane development (updated till March 24), the 116 sugar mills operating in UP have an outstanding of Rs 4,177 crore to be paid to farmers in the ongoing crushing season. Of these, 91 private mills are liable to pay Rs 3,785 crore. Likewise, the 24 cooperative mills have yet to pay Rs 391 crore. The corporation mills in Meerut owe Rs 4 lakh to the farmers. Another Rs 219 crore had to be paid by the millers in 2015-16 and Rs 43.74 crore in 2014-15, records accessed by TOI showed.
Payment of cane arrears within 120 days of government formation in coordination with banks had figured prominently in BJP's election manifesto, the 'Lok Kalyan Sankalp Patra', during UP assembly elections. A senior government official in the department confirmed that modalities for getting bank loans provided to the mills would be worked out soon. "State government would be sending the proposal to the Centre," he said.
UP CM Yogi Adityanath has already entrusted UP chief secretary Rahul Bhatnagar to monitor payment of cane dues to the farmers on a regular basis. Cane arrears had been a major poll plank of the BJP during the state assembly elections with Prime Minister Narendra Modi hitting out categorically at the previous SP government for failing to disburse compensation to the distressed farmers. Being one of the largest producers of sugar cane, UP's sugar politics had an impact on the election results, especially in the Jat-dominated western region which is where most of the sugar mills are located. Not surprisingly, soon after storming to power, the BJP appointed Suresh Rana, who represents west UP assembly constituency of Thana Bhawan in Muzaffarnagar district, as the cane development minister.
The previous Akhilesh Yadav government had been slapping challans and at times getting FIRs registered against the millers defaulting on payments due to farmers. The action, however, did not yield much result even as arrears continued to mount. This was despite the state government providing a subsidy of around Rs 17 per quintal (including Rs 2 per quintal as purchase tax, Rs 2.75 per quintal as entry tax and Rs 6.30 per quintal as society commission) on the state advisory price (SAP) of Rs 280/quintal.
The Top big defaulters (for 2016-17)
Bajaj (15 mills): Rs 2295.59 crore
Simbhaoli (3 mills): Rs 410.63 crore
Modi (2 mills): Rs 369.90 crore
Yadu (2 mills): Rs 58.97 crore
Mawana (3 mills): Rs 298 crore
Uttam (3 mills): Rs 137.5 crore
Wave (3 mills): Rs 21.9 crore
Rana (4 mills): Rs 71.34 crore
Birla (4 mills): Rs 44.5 crore
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