Cane dues: UP mills to get rebate of Rs 6 per quintal

Written by Deepa Jainani | Lucknow | Updated: Aug 30 2014, 08:19am hrs
The Uttar Pradesh government on Friday announced a financial assistance of Rs 6 per quintal for the payment of cane price for 2013-14 season. The additional help, however, will be provided only to those mills who clear their dues by September 30.

With the fresh round of assistance, the government's waivers and rebates to the industry now stand at Rs 17 per quintal under various heads. Earlier, the government had waived Rs 2 per quintal on purchase tax, Rs 2.73 on entry tax and Rs 6.30 on society commission, taking the total relief granted to mills at Rs 11.03. The move comes as a boon for the ailing sugar industry in the state. The industry, however, is not impressed as it expected the government to provide a relief of Rs 20 on every quintal of cane crushed.

Principal secretary, cane, Rahul Bhatnagar said the extra Rs 6-per-quintal relief will be given to only those mills that clear their entire cane arrears by September 30.

At the beginning of the 2013-14 season, the mills had said their paying capacity was low and that they can pay only Rs 260/quintal. They had requested the state to help in paying the remaining Rs 20 per quintal. But after a study by a committee, headed by the agriculture promotion commissioner, it was found the millers were in a position to pay Rs 263/quintal and, therefore, the government will help them by giving an assistance of Rs 17.03/quintal.

The earlier relief of Rs 11.03/quintal was estimated to cost the government Rs 770 crore. The fresh relief of R6 per quintal would cost Rs 380 crore to the government, taking the total burden to Rs 1,150 crore.