After several attempts to get the cane dues for last year cleared, the state government is now planning to issue recovery certificates (RCs) against the mills, which are yet to clear their arrears for 2012-13. The government has kept February 20 as the deadline for mills to clear their dues, before issuing RCs against the defaulters.
As per the latest report from the Uttar Pradesh Cane Commissioner’s office, Rs 541 crore is yet to be paid to the farmers for the last crushing season, while a total of Rs 19,997 crore have been paid to the farmers against their cane purchase for 2012-13. Around 78 of the 100 odd private mills in the state have already cleared their dues for the last year.
“We will wait till February 20 after which we will start issuing recovery certificates against the mills,” Cane Commissioner Subhash Chand Sharma told The Indian Express. “The major defaulters now are Bajaj group, Mawana group and Modi group. Between Mawana and Modi group, the standing dues are nearly Rs 300 crore, where as Bajaj Group has dues worth around Rs 154 crore to settle,” said Sharma.
In the crushing season 2012-13, Bajaj Group, which has 16 sugar mills running in UP, had crushed canes worth Rs 4071.48 crore, while Mawana group, with three sugar mills in Meerut and Muzaffarnagar, had crushed cane worth Rs 938.74 crore. Modi group, with two mills in Baghpat and Ghazipur, had crushed cane worth Rs 499.68 crore. Sharma said that recovery certificate had already been issued against Mawana Sugar Mill at Naglamal, Meerut, in August 2013. The mill had crushed cane worth Rs 199.5 crore in 2012-13, and had dues to the tune of 142 crore standing when the recovery certificate was issued against it.
As per reports, cane dues for current season is around Rs 1,200 crore. Of these, around 37 per cent of the dues have been cleared, said Sharma.
Meanwhile, the interest free loan promised by the Government of India under the interest subvention scheme for the sugar industry is yet to come through, said Sharma. The cane commissioner said that the state government has written to the Finance Ministry and other officials of Government of India for the bank loans to the sugar mills but nothing has come forth so far.