Sugar crisis: CM Yogi promises help to both cane farmers, mills

Virendra Singh Rawat
Lucknow / Nov 21, 2018
Uttar Pradesh chief minister Yogi Adityanath has assured help to both the sugarcane farmers and sugar mills to tide over the crisis faced by the sugar sector, manifested in the arrears of over Rs 6,800 crore.


The CM said the welfare of sugarcane farmers and strengthening of mills was the priority of his government, but the state would not allow the exploitation of farmers at any cost. He has directed officials to confabulate with the private millers for ensuring that the process of sugarcane outstanding settlement was expedited.


In UP, this year 121 sugar mills would be made operational, of which 85 had already started, while the remaining mills would become functional by Sunday. Yogi stressed all arrears be settled at the earliest and there should be no discrepancy in the process of cane procurement by mills for the current season.


The CM further underlined that the officials must ensure there was no bungling in the weighing of sugarcane and inspection of cane purchase centres.


Meanwhile, the state mills had collectively paid nearly Rs 28,633 crore against total sugarcane outstanding of Rs 35,463 crore for the previous crushing season 2017-18.


Earlier, the government had announced a package of Rs 4,000 crore to be given to the eligible private mills as soft loan to settle their arrears component. While, the mills have already applied for the soft loan, the state has released Rs 1,000 crore as first installment.


UP sugarcane principal secretary Sanjay Bhoosreddy said the banks had received 64 applications of Rs 3,873 crore from sugar mills, who have been facing liquidity crisis amid market glut and sugar price crash.

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