UP sugar impasse ends as mills get sops, but no change in SAP

Dec 02 2013, 00:42 IST
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Stateís sugar mills agreed to start the crushing of cane for this marketing year Stateís sugar mills agreed to start the crushing of cane for this marketing year
SummaryStateís sugar mills agreed to start the crushing of cane for this marketing year

government will give a total concession of Rs 11.03 on every quintal of cane that the industry crushes."

Stating that the sugarcane industry is the biggest industry in the state, the chief secretary said that in one crushing season, cane payments worth Rs 22,5000 crore is made to the 3.2 million farmers who are directly involved in the sector.

When asked about the fate of the nine recovery notices that had been issued by the state government against the mills for not clearing last yearís cane dues, the chief secretary said that since the first priority of the government was to start this crushing season, the RCs have been suspended temporarily.

Earlier in the day, almost the entire top names of the sugar industry, including Bajaj Hindusthanís Kushagra Bajaj, Balrampur Chiniís Vivek Saraogi, the Birla Groupís CS Nopany, DSCL Shriram Consolidatedís Ajit Shriram, Dhampur Sugarsí Gaurav Goel and Madhav Shriram of the DCM Shriram Group rushed to Lucknow on Sunday morning in an effort to find a way out of the mess.

According to sources, the consensus formula was finally worked out after Mulayam Singh Yadav decided to step in and work out a solution after matters started taking a turn for the worse, with farmers getting restless and violent as they were being forced to go in for distress sale of cane at anywhere between Rs 60/quintal and Rs 125/quintal. Also, opposition parties in western UP were reportedly taking advantage of the situation and stoking farmers.

Interestingly, even as the industry delegationís meeting with the chief minister ended at around 3 in the evening, reports stared pouring in from various districts that the mills had either started conducting the ground-breaking ceremonies or had started firing the boilers.

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