Cane dept cracks whip for farmers' dues

LUCKNOW: After issuing recovery certificates to four sugar mills, the UP cane department is all set to tighten the noose on other millers to ensure payment to cane growers for the current sugar season. The department has asked the district magistrates to take stock of the product sold by the private sugar mills and ensure that 85% of the cost recovery on various products produced in the mills is paid to farmers in the current crushing season.The move tends to assuage the growing resentment farmers ahead of Lok Sabha elections.
Well placed sources said the top brass of cane department is likely to meet chief minister Akhilesh Yadav in the coming week and apprise him about the current season arrears which are already touching a mark of around Rs 6,000 crore. Principal secretary Rahul Bhatnagar confirmed that the department will be putting pressure on millers through district magistrate to pay up the pending dues. "We have almost managed to clear the pending dues for the last year. Now we would be focusing on the current season,'' he said, speaking to TOI
He said the DMs would soon be asked to keep a vigil on the stock of sugar and other product including molasses, which is sold to countrymade liquor. "The district administration will ensure that 85% of the payment received is paid to the farmers.'' said additional cane commissioner N P Singh. The tough stance comes in the wake of raging resentment amongst the farmers who have been agitating against the millers.
Singh said that once the export of sugar increases, the sugar glut, which has been keeping the sugar prices low will begin to look up. Cane department sources said that 98.59% of the cane arrears have been paid to the farmers for the crushing season 2012-13. The total outstanding dues for the previous season are around Rs 317 crore. Officials said that for the current season, that is 2013-14, payment of Rs 3227.84 crores have been paid to the farmers. As for the remaining Rs 5476 crores, the state government has issued orders to the millers.
It was only on Friday, last week, when UP cane department slapped recovery certificates on four private sugar mills-Modinagar in Ghaziabad, Malakpur in Baghpat, Mawana in Meerut and Titabi in Muzaffarnagar-for not paying adequate dues to the cane growers.
The UP sugar mills association (UPSMA) insisted that the mills are yet to get the benefit of loans under Interest Subvention Scheme which will further help in reducing the cane price arrears. An UPSMA spokesperson said there has been a wide variation in the sugar recovery in the state. In case of west UP, sugar recovery is lowest at 8.48% followed by Central UP at 9% and East UP with 9.34%.
"In comparison to season 2012-13, the cane crushed has been lower by 17%. The production is down by 16% but the recovery across U.P. is up by 0.34%. The crushing and production figures are catching up with the last season,'' the spokesperson said.