more transparency if instances like these are reported,” he said.
The sugar industry association too is also aware of companies acting as intermediaries to facilitate crop loans for farmers. Abinash Verma, director general, Indian Sugar Mills Association, said, most companies are banks’ agents and help farmers with crop loans. “If companies are doing this (mortgaging land of one set of farmers and paying dues of another set of farmers) it needs to be investigated.”
In UP, over 60 out of the 101 private mills have so far informed the state authorities about suspension of crushing operations in the 2013-14 marketing year (October-September), raising the spectre of default. Among them, listed players like Bajaj Hindusthan, Balrampur Chini, Dwarikesh Sugar and Dhampur Sugar Mills have also communicated their decision to the bourses via regulatory filings. Most of them are waiting for a bailout from the Centre ahead of the upcoming polls as a potential facesaver.