May 29, 2015
Sugaronline | http://goo.gl/oCZh20
The Allahabad High Court has asked sugar mill owners in Uttar Pradesh to settle 75% of cane arrears to farmers by July 15, according to India's Business Standard newspaper.
Mill owners owe INR100 billion (US$1.56 billion), according to India's Business Standard newspaper.
The consolidated dues of private, cooperative and government mills includes interest dues of INR2.60 billion, based on the state sugar price of INR280 a quintal.
Hearing the case, the high court asked the cooperative and government mills to settle their part of the arrears in the ratios of 25% each by June 15, June 30 and July 15, respectively. The decision on the remaining portion would be considered on the next date of hearing on July 28, the court said in the interim order.
Likewise, the private mills have been asked to settle 25% of their dues by June 15. The court observed private millers should also settle 75% of their dues by July 5.
Private mills account for the major portion of arrears (INR89 billion, including interest payable of INR2.40 billion). There are 118 operational private mills in Uttar Pradesh.
Likewise, the 23 cooperative and one Uttar Pradesh State Sugar Corporation Limited unit account for INR10 billion and INR250 million, respectively.
The state government informed the court it was mulling a new policy to support the beleaguered sector. The court said the state should bring the sugar industry on board before finalising this.