UP to clear Rs 10,000 cane dues before start of new season

New Delhi: Uttar Pradesh Cane Development Minister Suresh Rana said the state will ensure the entire cane arrears of around Rs 10,000 crore are paid to farmers before the start of the new season from October.

A proposal to provide Rs 5,535 crore for the purpose of clearing cane dues of both cooperative and private sector will be placed before the cabinet in the coming week, he said.

Sugarcane crushing season in Uttar Pradesh, the country's leading sugar producing state, starts from October 20 and continues till November 5.

"Cane arrears have come down to around Rs 10,000 crore. We have kept a target to bring the dues to zero before the start of the new season from October 20," Rana told reporters on the sidelines of 59th annual general meeting of the National Federation of Sugar Factories Ltd (NFSFL) here.

The state government will place a cabinet proposal seeking approval of Rs 5,535 crore funds, which was allocated in the state budget for sugar sector, he said.

As per the proposal, Rana said the state government will provide Rs 1,010 crore to cooperative mills, Rs 25 crore to a state mill and Rs 500 crore to private mills for direct payment of cane dues.

Another Rs 4,000 crore will be made available through a soft loan to private mills for clearing cane payment. The modality of the soft loan is being worked out, he added.

He did not elaborate further.

Earlier speaking at the AGM, the minister said the state government is committed towards cane growers.

The state produces 38 percent of the country's total sugar production of 32 million tonnes in the 2017-18 season (October-September). The sugar output is increasing on improved crop yields and better recovery, he added.