UP sets up panel to look into sugar crisis

LUCKNOW: A group formed by Uttar Pradesh sugarcane development minister Naseemuddin Siddiqui will submit its suggestions on resolving the crisis in the state’s sugar sector next week. As crushing is on in some mills, it is expected that the total production for the 2006-07 season would reach 85-87 lakh tonnes. Also, according to sources, mills which haven’t paid the farmers up to 80% of their dues are being issued recovery certificates (RC).

The five-member group comprises the state cane commissioner, principal secretary (cane development and sugar industry) and three industry representatives. When contacted, UP cane commissioner Gangadin Yadav told ET: "We are in talks with the industry to solve the crisis.

The main priority of the government is to ensure that the total available cane (excluding that available for juices & seeds) be crushed and the arrears to farmers be paid at the earliest, and, at the same time, guarantee survival of the state’s sugar industry.”

On the other hand, according to sources, notices are being issued to some 45 sugar mills which have paid less than 80% of the cane prices to the farmers. An official on the basis of anonymity said, "Last year around Rs 6,861 crore was paid to the farmers and this year about Rs 8,088 crore has been paid and still 22% of the amount is in arrears."

The industry says that it should be provided the same incentives as those doled out by other sugar-producing states. During the 2006-07 crushing season, total production of sugarcane in UP is expected to reach 85 lakh tonnes as against 58 lakh tonnes last year.