Lucknow, Sep 25: Uttar Pradesh government in a major sop to the sugarcane farmers as well to the mills has announced a soft loan to the mills to the tune of Rs 4000 crores plus a subsidy of Rs 4.50 per quintal to clear the dues of the farmers by November 30 next.
With announcing that the new crushing season of sugar cane would commence from the last week of October, chief minister Yogi Adityanath said that the soft loan to the mills would be provided through banks and other financial institutions on a 5 per cent interest for five year, if the mill has paid at least 30 per cent of the cane dues.
The decisions were taken at the state cabinet meeting under the chairmanship of the CM here on Tuesday.
Later briefing the mediapersons, the CM said if a mill default in the soft loan matter then they will have to pay 12 per cent interest but the payment would be made directly to the farmers from the concerned bank or financial institutions.
” But all the dues of the farmers should be paid by November 30 next at any cost,” he said.
Meanwhile, the government has also decided to provide Rs 4.50 per quintal subsidy to the mills which will be given directly to the farmers. Government has sanctioned Rs 500 crores for this purpose.
Yogi Adityanath said that till date of the total cane dues in the state of Rs 9770 crores of the crushing season 2017-18 ,the private mills are yet to pay Rs 8500 crores while the cooperative and federation mills will have to pay Rs 887 crores. This season, a total of 1111.90 tonne of cane was crushed of total amount of Rs 35,458 crores of which 25,888 crores have been paid to the cane growers.
” of the total dues of the private mills, 63 have paid 73 to 80 per cent of their dues to the farmers, 42 mills have paid above 50 per cent of the dues and 9 mills have paid less than 50 per cent of their dues,” he said though admitting that low rate of sugar in the market was the main reason for the mills suffering losses.
The CM said that the government was concerned about the financial health of the sugar mills which is directly related to the four million cane farmers o the state hence, the centre has approved the new Ethanol policy of UP where the mills would be given Rs 53 per liter for ethanol blended with molassis and Rs 59 per liter for blending with sugar juice.” This new policy would repair the financial health of the mills whereas the cane growing area in the state has increased in the next crushing season,” he said.
UNI.
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