The Hindu Business Line : Sugar mills in UP foot Rs 252-cr dues to growers

SUGAR mills in Uttar Pradesh have paid up dues of nearly Rs 252 crore, ever since Mr Rahul Gandhi, Congress MP, raised the issue of cane arrears totalling over Rs 517 crore to farmers in the State in the Lok Sabha on March 21.

The amount represented the cane arrears for the 2002-03 crushing season (October-September), arising from the difference between the Statutory Minimum Price (SMP) announced by the Centre and the higher price `advised' by the State Government (SAP).

While the average SMP during 2002-03 worked out to around Rs 80 a quintal, the SAP for the season was fixed at Rs 95-100 a quintal.

Mills had refused to pay the SAP, disputing the authority of the State Government to fix (`advice') cane prices over and above the Centre's SMP.

But in a landmark judgment delivered on May 5, 2004, a five-judge Constitution Bench of the Supreme Court ruled in favour of the State Government.

In his speech, Mr Gandhi alleged that State administration under Mr Mulayam Singh Yadav was not doing enough to pressurise sugar mills to comply with the directions of the apex court and pay up the difference between the SAP and SMP.

The political intervention seems to have worked, given that as on April 13, the outstanding cane payment arrears have come down from Rs 517.30 crore to Rs 265.69 crore.

Within 25 days, mills have paid Rs 251.62 crore to growers.

Those who have discharged their arrears in full during this period include Balrampur Chini (Rs 41.65 crore at its Balrampur, Babhnan and Tulsipur units), Bajaj Hindusthan (Rs 37.03 crore at Gola and Palia Kalan), Mawana Sugars (Rs 14.44 crore at Mawana and Titawi), Seksaria Sugar (Rs 8.42 crore at Biswan), DCM Shriram Consolidated (Rs 5.41 crore at Roopapur), Tikaula Sugar Mills (Rs 4.44 crore), Upper Doab Sugar (Rs 4.09 crore at Shamli) and DCM Shriram Industries (Rs 2.21 crore at Daurala).

On the other hand, Dhampur Sugar has so far liquidated only Rs 9.09 crore out of the outstanding arrears of Rs 67.82 crore at its factories in Dhampur, Mansurpur, Rozagaon and Asmouli. Payments by the K.K. Birla Group, too, have been only to the extent of Rs 13.45 crore (against total arrears of Rs 52.78 crore at Rosa, Hargaon, Aira and Seohara), with the corresponding figures being Rs 17.72 crore and Rs 35.49 crore for Triveni Engineering (at Khataoli, Deoband and Ramkola) and Rs 3.02 crore and Rs 15.57 crore for Simbhaoli Sugar (at Simbhaoli and Chilwaria).

"The State Government is in the process of issuing recovery certificates to mills who are yet to clear their arrears. We expect the balance amount of Rs 265.69 crore to be paid in the coming weeks," officials said.

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