23 UP cooperative sugar mills set to complete 100% payment to farmers
UP’s 23 cooperative sugar mills have cleared 99.76% of farmers’ cane dues for the 2024-25 season, paying Rs 2,724.09 crore of Rs 2,730.59 crore. Sathiaon mill alone owes Rs 6.5 crore. Timely payments boost farmer trust, liquidity, and mill creditworthiness, with political stakes high ahead of panchayat elections.
Lucknow: The 23 cooperative sugar mills of the state are on the verge of completing cent-percent-cent cane payment to the farmers for the 2024-25 cane crushing season.The data of the cane department shows that out of the total due of Rs 2,730.59 crore, the cooperative mills have made a payment of Rs 2,724.09 crore. This amounts to 99.76% of the total dues meant to be paid to the farmers. The Azamgarh-based Sathiaon sugar mill is the only one which is defaulting on a payment of around Rs 6.5 crore. The maximum payment of Rs 1,230 crore has come from 12 mills in central UP, followed by six mills in the west UP region which have paid around Rs 1,120 crore. The five mills in the east UP too have performed well by paying Rs 373.56 crore out of the total dues of around Rs 380 crore. The Sathiaon sugar mill, which is required to pay a total cane payment of Rs 129.56 crore, has paid Rs 123.07 crore. The arrears, though small in percentage, keeps the narrative of mills defaulting on payment alive. Sources said that the issue required to be solved promptly to thwart any possible angst among the associated cane growers. The development is seen as important since timely cane payments happen to be crucial for farmers’ liquidity ahead of the next cane crushing season, which is scheduled to start from next month.
Achieving nearly 100% payout enhances trust in cooperative mills, which historically lagged behind private mills in payments. Sources said that the Yogi Adityanath govt in UP has been under pressure to ensure farmer payments ahead of the upcoming political campaigns – essentially the panchayat elections due next year. Industry experts said that the cooperative sugar sector, often plagued by arrears, is showing signs of better financial management. Not surprisingly, the reduction in arrears will improve the creditworthiness of mills, potentially attracting further support schemes. Even as the cooperative sugar sector shows signs of better performance, the 93 private sugar mills continue to lag in payment to the farmers. Sources said that out of around Rs 3,2000 crore dues, the private mills have made a payment of around Rs 2,9000 crore. CM Yogi Adityanath, during a review meeting, had recently said that the command area allocated to sugar mills for cane procurement should be determined on the basis of records of payment made to the farmers. The Yogi govt has been claiming of making around Rs 2.86 crores of cane payments since 2027, which was around Rs 7,3000 crore more than the one paid between 1995 and 2017.
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Source : The Times Of India
