Sugar crisis resolved; mills to start crushing

Update: 2013-12-02 00:01 GMT
‘The private sugar mills have now accepted to pay Rs 280 per quintal to the cane farmers in two installments and will start crushing in all the sugar mills within three to four days,’ announced UP chief secretary Javed Usmani here on Sunday.

With the resolve of the crisis, UP government has also suspended all the legal action against the mills including Recovery Certificates(RC) issued against nine private sugar mills on Saturday.

Addressing a press conference, Usmani in the presence of state principal secretary Sugar cane development Rahul Bhatnagar, said the private sugar mills will pay Rs 260 per quintal to the farmers at the time of cane purchase and the remaining Rs 20 before the end of the crushing season by April next.
‘The government has added another sop for the mill owners, when we have accepted to pay Rs 6.20 per quintal as commission to the cane societies which was to be paid by the mills,’ he said while adding that the government had already given two other rebates including waiver from the entry tax and purchase tax.

The government’s decision came in wake of a letter shot by the UP Sugar Mills Association (UPSMA) here today to the Chief Secretary demanding the payment of Rs 280 per quintal to the farmers in two installments and waiver of commission to the cane societies, entry tax and purchase taxes.

Usmani said that government has not compromised with the sugar mills at any point and had informed them that there would be no reduction of cane price.’ The sops were given in wake of the losses of the sugar mills due to fall in the price of sugar,’ he said while adding that it is the duty of the government to see the welfare of the farmers as well as the mills.

Similar News