Lucknow: The Uttar Pradesh Sugar Mills Association(UPSMA), representing the 119 private sugar mills in the state, has announced to boycott the meeting of the state government to reserve the cane area for the mills on September 11.
UPSMA sources here on Saturday said that they have sent a letter to the Sugar Development Commissioner about their decision not to participate in the meeting to be held in the Uttar Prdaesh capital. "We are not participating in any meetings of the government as they are not paying heed to our problems and demands," sources said.
Against the demand for Rs 40 per quintal cane crushing, the government has proposed just Rs 4 per quintal, which is not acceptable.
The UPSMA demanded that the State Advisory Price(SAP) should be based on revenue sharing basis, and rebuked the state government's decision to provide a soft loan of Rs 4000 crore to thems, which was approved by the state government in the supplementary budget grants. "We have exhausted all our options in getting loans from anywhere and hence there is no question of availing soft loan,'' UPSMA said..
The only way to sail through the troubles is subsidy of Rs 40 per quintal and nothing else," sources said.
The new crushing season 2018-19 is expected to commence from next. As the Lok Sabha elections are also due early next year, hence the BJP government in the state would be under pressure from the cane farmers as well as the sugar mills to resolve the vexed issue.
Cane farmers dues for the last crushing season of 2017-18 in the state was still over Rs 9,992.36 crore till September 7,2018. The maximum amount of the dues was of the 119 private mills who owe the farmer Rs 8794.68 crore while the cooperative mills have to pay Rs 1168.08 crore and the one corporation mill has dues of Rs 29.60 crore.
However, the dues of the cooperative and corporation mills are likely to end as the government has passed the funds for the payment to the farmers in the supplementary budget passed by the assembly last month.
The sugar mills have just paid 71.82 per cent of the total dues of the farmers which is around Rs 25,465.92 crores against Rs 35,458.28 crores.
Sugarcane is the biggest cash crop in the state engaging 50 lakh farmers directly and 2.5 crore or about 15 per cent of the population of the state earn their livelihood directly through sugarcane.
Sugarcane is grown in 44 districts of the state and the sugar industry generates revenues of Rs 30,000 crore annually, making it the largest industry of UP. UNI