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87% of cane dues payment cleared in Western UP; 97% in other regions

Cooperative sugar mills in west Uttar Pradesh lag behind in clearing cane dues, with only Anupshahr mill achieving full payment. The remaining five have paid just over 87% on average. In contrast, mills in central and east UP have performed better, with 16 out of 23 cooperative mills clearing 100% dues. Experts warn of farmer resentment and urge structural reforms.

Lucknow: Cooperative sugar mills situated in the rich cane belt of west UP have come to fare poorly — vis-a-vis payment of cane dues to the farmers — in comparison to the mills in the central and eastern parts of the state.Latest data of the UP Cooperative Mills Association shows that out of six sugar mills in the west UP, only one – the Anupshahr sugar mill in Bulandshahr – has made cent percent payment for the sugar cane procured from the farmers. The rest five cooperative mills in – Baghpat, Morna (Muzaffarnagar), Nanauta (Saharanpur), Ramala (Baghpat) and Sarsawa (Saharanpur) – are yet to make full payment to farmers even though cane crushing season came to an end in mid-May. The average cane payment made by cooperative mills in west UP is to the tune of just over 87%.In contrast, it is the sugar mills in central and east UP which have done dramatically well. In central UP, 11 out of the 12 cooperative mills have paid their dues completely. The only mill which is yet to make full payment is Snehroad mill in Bijnor. Till date, the mill has made a payment of 84.27%. The cooperative mills in central UP have made an average payment of 97%.

Similar situation prevails in east UP where except for Sathiaon sugar mill in Azamgarh, other four cooperative mills have made a cent-per-cent payment to the farmers. Having paid only 65% of cane dues, Sathiaon is the worst performing mill in the cooperative sector of the cane industry. The average payment made by east UP mill is to the tune of over 88%. In all, out of 23 cooperative sugar mills, 16 have made complete payment. Data shows the cooperative mills bought cane worth Rs 2730.56 crores. Of this they paid 2515.57 crores, which is 92.13% of total dues. Together, these mills are yet to pay Rs 214.99 crores. A senior official in the cane development department said that the cane price payment in the remaining mills will soon be accelerated.Experts said that the delay in payment by mills in west UP potentially risks alienating farmers. This is also seen as an indicator of the structural inefficiencies — ranging from mismanagement to operational losses. The situation, sources said, could trigger resentment amongst the farmers in the politically restive region.Officials said that the department sought to consider financial intervention, stricter payment timelines and performance-based grading of cooperative mills.

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Source : The Times Of India

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