Defaulting Sugar Mills: Akhilesh govt to get tough

Considering sugarcane arrears of over Rs 8,000 crore and the Allahabad High Court not taking kindly to delay in farmers’ payment, the Uttar Pradesh government intends initiating ‘ action against the defaulting sugar mills, reports Business Standard.

UP cooperative sugar factories federation said it would comply with the HC order and try to clear all dues soon. If needed, it would seek funds from the central govt. as well. The 23 sugar mills in the cooperative sector owe dues of Rs 476 crore, the federation said.

Meanwhile, state govt. officials said following the HC order the govt. would act ” real” tough if the defaulting sugar factories did pay farmers on time.

Only 63 percent of the state sugarcane payment for the 2014-15 crushing season has so far been settled by mills with the private millers faring even worse at under 61 percent

Sources say there are 94 private mills in UP and they have pay total arrears of Rs 7,656 crore.

 

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