24th December, 2002
Ministry of Consumer Affairs, Food & Public Distribution  


SUGAR MILLS URGED TO CLEAR SUGAR CANE DUES TO FARMERS


Shri Sharad Yadav, Union Minister of Consumer Affairs, Food and Public Distribution called upon the management of sugar mills to clear the sugar cane price due to farmers on a priority basis. Inaugurating the 68th Annual General Meeting of Indian Sugar Mills Association (ISMA) here today, the Minister said that the cane price arrears stood at around Rs.647 crores and the dues of the UP Sugar Mills were to the tune of Rs.359.74 crore, which were more than 50 per cent of the total dues of the farmers in the country.

Reiterating the steps initiated by the Government to alleviate hardship of sugarcane growers, the Minister said that sugar mills could avail of funds provided by the Ministry amounting to Rs.786 crores for paying sugar cane farmers. As far as allocation of buffer stock, sugar factories who had not sold sugar over and above the allocated quota from the Directorate and who were having high inventory of sugar should be compensated by giving more sugar subsidy, the minister said.

. The minister expressed satisfaction that 92 out of 100 working sugar mills in Uttar Pradesh have started crushing operations and the remaining mills are expected to start shortly. Out of 332 working factories from other states 272 mills have started crushing for the season, he pointed out.

Shri Sharad Yadav also indicated the decision of the Ministry to enforce lavy sugar "Release Mechanism" to prevent the crises of sugar industry from further deteriorating. He also pointed out that more assistance to sugar exporters will be provided in addition to the existing incentive of reimbursement of inland transport and freight charges.