Sugar manufacturing in Uttar Pradesh, the nation’s second-largest producer of the sweetener after Maharashtra, has fallen round 7.3% year-on-year to 10.24 million tonne (MT) within the 2021-22 season.
The dip in manufacturing is primarily as a result of diversion into ethanol manufacturing whereas rising illness and pest infestation additionally impacted the output. The sugar restoration, too, has been falling steadily. While in 2018-19, the restoration was at a document 11.46%, it decreased to 11.30% in 2019-20, whereas in 2020-21, the restoration was at 10.76%. This 12 months, it has struggled to achieve 10.10%, primarily as a result of climate turning warmer-than-expected.
Meanwhile, the sugar crushing season within the state has come to an finish for the 2021-22 season, with mills clearing nearly 76% of their cane dues to the farmers.
According to knowledge accessed by FE, as on June 3, the 120 mills that operated on this season have paid Rs 26,630 crore cane dues, whereas Rs 8,378 crore are nonetheless pending. The 93 personal sugar mills working within the state have cleared 78% of their dues and nonetheless owe roughly Rs 6,995 crore, whereas the 24 UP Cooperative sugar mills have paid 60% and have a pendency of Rs 1,161 crore. The three UP sugar company mills have paid 48% of their dues and nonetheless owe Rs 222 crore.
Among the personal millers, 4 sugar corporations — Bajaj Hindustan, Modi Sugars, Simbhaoli Group and Yadu Group — collectively owed greater than 50% of the state’s complete dues. Bajaj Hindustan, which operates 14 factories within the state, is the topmost defaulter, owing Rs 3,200 crore, whereas Modi Group’s two factories owed Rs 686 crore. Simbhaoli Group had Rs 583 crore pending whereas the Yadu Group had an excellent of Rs 126 crore.
Many among the many personal sugar mills have cleared all their cane dues. Groups like Balrampur Chini, DCM Shriram, Dalmia, Dhampur, Dwarikesh and Triveni, have cleared 100% of their dues, whereas Birla Group and IPL have cleared practically 96% of their dues. Some others like Uttam Sugars, Wave Group and Mawana have cleared greater than 80% of their cane funds. Not solely the larger teams, even some particular person mills like Parsendi and Biswan, Tikaula and Pilibhit have cleared their whole cane dues.
Talking on the backlog in clearing the dues by some personal millers, a miller requesting anonymity stated this has change into a recurring downside with these teams, who carry over the cane funds to the following season. “Every year, a handful of defaulter mills bring down all the good work done by the progressive mills. And what is worrisome for the sector is the fact that the mismanagement of the few defaulters is always overlooked by the state government. No action is taken against them, which acts as a dampener for those who work hard to keep their books clean,” stated a mill proprietor requesting anonymity.
Interestingly, the 24 cooperative mills within the state have paid solely 60% of their dues. While the overall cane dues of those 24 mills stand at Rs 2,962 crore, they’ve arrears of Rs 1,161 crore, whereas the three mills of UP Sugar Corporation have cleared solely 48% of their dues and nonetheless have Rs 222 crore pending. According to sources, many of the cooperative mills are outdated and loss-making and incur losses yearly, forcing the state authorities to step in to clear the farmers’ cane dues and likewise pay for his or her upkeep.
Source: www.financialexpress.com”