UP cane arrears stand at Rs 9,500 crore: 5 big private mills owe Rs 5,000 crore to farmers

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Published: July 10, 2019 1:04:42 AM

Of the privately-owned sugar mills, five big groups — the Yadu Group, Simbhaoli Sugars, Modi Group, Bajaj Group and Mawana Sugars — owe up to Rs 5,000 crore.

Cane dues on the same date last year stood at Rs 12,075 crore.Cane dues on the same date last year stood at Rs 12,075 crore.

Almost a month after the sugar season 2018-19 in Uttar Pradesh ended, the mills have paid just 72% of their cane dues, and owe up to Rs 9,500 crore to the farmers.

Of the total dues, private mills owe almost Rs 9,000 crore, while three UP Sugar Corporation and 24 sugar cooperative mills owe the remaining Rs 500 crore, showed data released by the state sugar and cane department till July 4.

Of the privately-owned sugar mills, five big groups — the Yadu Group, Simbhaoli Sugars, Modi Group, Bajaj Group and Mawana Sugars — owe up to Rs 5,000 crore.

The Bajaj Group, which runs 14 mills, has the highest outstanding of almost Rs 3,146 crore. It is followed by Simbaoli Group with dues of Rs 624 crore, Modi Group with Rs 492 crore, Mawana Group with Rs 468 crore and Yadu Group with Rs 144 crore.

Percentage-wise, Yadu Group paid a mere 11.95% of its total payment, while Simbhaoli Sugars paid 22.09%, Modi Group 26.45%, Bajaj Group 37.81% and Mawana Sugars 46.78%.

On the other hand, some other groups have paid well above 90% of their total dues. They include mills owned by the Dalmia Group, which has paid more than 96%, Dwarikesh and DSCL groups which have paid 95%, Balrampur Chini mills, which have paid 91% Birla Group, which has paid 85%, Dhampur and Triveni groups which have paid 83%.

“It is rather frustrating and sad that while we are making every possible effort to pay the farmers on time, despite many odds, there are some mills which are being allowed to default on the payments with impunity,” said a miller with a large presence in the state.

Talking to FE on condition of anonymity, he added that those mills which have made payments on time feel cheated. “For those of us who are working hard to ensure that the farmers are not inconvenienced, it seems as if working professionally is a disincentive. If after paying on time, we are treated at par with those who are not, it seems we are being penalised while they are being shielded and given extra time every year. It acts as a disincentive and makes us feel we too, could have gone scot free had we not shown so much of alacrity in making the payments,” he added.

Out of a total of 119 mills that operated during the season, 92 are in the private sector while 24 belong to state cooperative sector, while three belong to UP Sugar Corporation. Cane dues on the same date last year stood at Rs 12,075 crore.

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