Average payment to sugarcane farmers in Uttar Pradesh at 71%; sugar season half over

The sugar crushing season in the country’s top producing state of Uttar Pradesh has already crossed the half-way mark in the ongoing 2021-22 season, but as many as 18 sugar factories of the total 120 have not even opened their account yet, thereby pulling down the state’s average payment for the current season to 71%, with cane arrears piling up to Rs 5,058 crore, reports Financial Express. 

While the payment is definitely better than the previous season (2020-21), when the dues during the same period were Rs 8,570 crore, it could have been better, especially as many factories have made above 100% payment.

According to data accessed by Financial Express, till February 14 the state’s average payment for the current season was 71%, with the 93 sugar mills in the private sector paying 74% of their dues, while the 24 mills in the cooperative sector have paid 40% and the three mills of the UP Corporation sector 43%.

A closer look at the numbers revealed that as many as 38 sugar mills have cleared payments above 100%. These include the 10 mills of Balrampur Chini (107%), four mills of the Birla group (103%), four mills of the DCM Shriram group (100%), three mills of the Dalmia group (106%), five mills of Dhampur Sugar (105%), three mills of the Dwarikesh group (111%) and seven mills of the Triveni group (102%).

These are closely followed by three mills of the Uttam group, which have cleared 91% dues, six of Indian Potash, which have cleared 88% dues and four mills of the Wave group, which have paid 75% of their dues. On the other hand, eight factories of Bajaj Hindustan, the largest group in the state with 14 sugar factories, have not even cleared a single penny of the farmers, while the remaining six have made minuscule payments. The group’s overdues after 14 days of purchasing cane stands at Rs 2,400 crore, against which it has made a payment of Rs 20 crore only.

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