Bar defaulting sugar mills from running units, PM urged - ECAS Punjab

Bar defaulting sugar mills from running units, PM urged

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Chandigarh, October 10

Rajya Sabha MP Partap Singh Bajwa has written to Prime Minister Narendra Modi to bring in legislation that bars private sugar mill operators from running their units if they default on payment to cane growers.

Quoting the data submitted in the Lok Sabha, Bajwa said Rs 15,683 crore was still owed from the 2016-17 season, Rs 242 crore from 2017-18, Rs 548 crore from 2018-19 and Rs 12,994 crore from 2019-20. As a result, farmers had been waiting for their payments for years together.

Due to the policies of the Centre, sugar prices were allowed to increase to make the mills viable. There had been a 35 per cent increase in the sugarcane price from Rs 230 per quintal in 2011-12 to Rs 310 per quintal in 2019-20, Bajwa said.

A sudden drop of sugar price during 2017-18 led to financial crisis for both farmers and mill operators. The government declared the SMP of sugar in 2017-18 at Rs 2,900 per quintal, which was further enhanced to Rs 3,100 per quintal for 2018-19 and to Rs 3,300 per quintal for 2019-20. These measures were not sufficient in ensuring that mill operators cleared their dues to farmers, he said. — TNS



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