Private sugar mills demand interest refund on govt loan
day after the Punjab government asked the state’s private sugar mills to pay up dues to the farmers for sugarcane they lifted during the previous crushing season (2017-18), the millers on Wednesday demanded reimbursement of interest on the loan the government owes them.
The millers say the government owes them at least ₹75 crore and they owe farmers ₹201 crore for the sugarcane they lifted in the previous season. They say it will be easy for them to pay out if they are given reimbursement.
Chief minister Amarinder Singh on Tuesday had asked the private mills to pay up the farmers or face action.
The farmers are in a catch-22 situation as they are expecting a bumper crop this time but the previous year’s payment is pending and in the current season is ready for harvest. They have been protesting against the government and the mills for delay in clearing their dues but in vain.
In October 2015, the SAD-BJP government had arranged a soft loan of ₹200 crore for three-and-ahalf years to privately owned sugar mills to help them pay the farmers’ sugarcane cost. Of the nine private sugar mills in the state, six had availed the loan.
The government had assured to own up the interest on the loan.
These sugar mills have not started crushing cane this time as well since they say business is unviable as the state advisory price (SAP) of ₹310 per quintal fixed by the government for growers is higher than the Centre’s fair remunerative price (FRP) of ₹275.
“The amount (₹75 crore) if the government reimburses will make things easier for us. Most mills which availed the loan have paid back to their bankers along with interest but the state government has not reimbursed the interest despite reminders. We had even sent a representation to the government,” said Private Sugar Mills Association president Jarnail Singh Wahid..
Additional chief secretary (cooperation) Vishavjeet Khanna said he has already taken up matter with the finance department and the government will make announcement on this soon. “But it shouldn’t not stop the mills from paying up the farmers’ dues of the last season,” he added.
CHIEF MINISTER CAPT AMARINDER SINGH HAS ASKED THE PRIVATE MILLS TO PAY THE FARMERS DUES
OR FACE ACTION