Arrest defaulting sugar mill owners: Balyan to UP

New Delhi, June 20: Concerned over R2,100-crore cane arrears in UP, Union minister of state for agriculture Sanjeev Balyan on Monday said the state government should take over the defaulting sugar mills and arrest their owners.

At present, total cane arrears in Uttar Pradesh stand at about R2,118 crore. Out of which, a maximum due of R1,800 crore belongs to just four sugar mills.

“Cane arrears is a big issue in UP. Four mills — Mawana, Modi,SimbhaoliandRanaSugars — owe R1,800 crore dues to cane growers. The defaulting millownersshouldbearrested. The UP government should takeover such mills. The central government is ready to help them in this regard,” Balyan told reporters here.

The state gover nment is not taking stringent action against defaulting mills despite law in place, he said, adding that “if the government arrests one mill, the rest will start making payment to farmers.”

The sugar rates now are at a favourable level for mills and they should have made payments promptly. Bajaj Hindustan had cleared 50% of the dues, while others are yet to make, he added.

Balyan, who is a BJP MP from Muzaffarnagar, said the state government has not taken any action despite writing several letters.

According to the industry players, the four mills have not been able to clear cane arrears because they did not get working capital from banks. They would be able to clear dues after they selling sugar in the market.

The cash crunch of these mills has aggravated with the state government not yet clearing their power dues. These mills were not given soft loan last year.

Sugar production in Uttar Pradesh, the second largest producing state, is estimated to decline to 6.8 million tonne in 2015-16 marketing year (October-September) from 7.1 million tonne in the previous year. The crushing for this year has been completed. PTI