Cane growers awaiting dues, pvt sugar mills seek govt aid
Thousands of sugarcane growers in Haryana are having a bitter experience of having to wait for their dues with private sugar mills stopping their payments of around ₹200 crore. Saraswati Sugar Mill (SSM), Yamunanagar, and Piccadilly Sugar Mill in Bhadson, Karnal, are yet to clear dues for sugarcane purchased in April and May.
Farmers are, thus, forced to run from pillar to post to meet their expenses. “We have to make payments of labourers and also need money for the next crop. The mill has stopped payments since April 12. We are borrowing from commission agents, at higher rates, for our daily needs,” said Sumit Kumar of Radaur in Yamunanagar. He claims that the SSM owes him ₹3.5 lakh.
MILLS CLAIM SUGAR PRICES HAVE DIPPED
The mills stopped paying farmers, soon after the union government made an announcement of providing ₹5.5 per quintal relief on sugarcane sold to the mills. Owners have claimed that the announced was insufficient as the prices of sugar have fallen from ₹4,200 per quintal to ₹2,700 per quintal over the past year or so. Mills had also written to the state government seeking compensation of ₹10 per quintal.
State government officials say SSM Yamunanagar had crushed 1.77 crore quintal of sugarcane and owes ₹132 crore to farmers. Both factories have stopped crushing.
In fact, fearing that the government may actually pay the assistance of ₹5.5 per quintal directly to farmers, the Piccadily Mill has deducted this amount
Both cooperative and private sugar mills are running into losses. The mill would not be able to clear dues of ₹132 crore if the state govt fails to extend support. SC SACHDEVA, COO, SSM Yamununagar The government will use its powers against mills and protecting interests of farmers is top priority. Cooperative mills are making payments as per schedule. CHANDER PRAKASH KATHURIA, chairman, Haryana Sugarfed
from the sugarcane it has bought.
Chief operating officer of SSM Yamunanagar SC Sachdeva told HT, “The government should not differentiate between cooperative and private sugar mills.”
Private sugar mills should also be given compensation on the pattern of the cooperative sugar mills. Both are running into losses.” He added that the mill would not be able to clear dues of ₹132 crore if the state government failed to give support.
WILL FORM COMMITTEE, SAYS GOVERNMENT
Haryana Sugarfed chairman Chander Prakash Kathuria did not give any assurance about any financial assistance to the private mills from the state government.
He added, “A committee will be formed to look into the matter soon. Private mills will be told to clear dues at the earliest.”
On a query on the government’s course of action if the mills refused to pay up, he said, “The government will use its powers against the mills and protecting interests of the farmers is top priority of our government. Cooperative mills are making payments as per the schedule drawn up.”