UP government’s efforts to expedite cane price payment

As per instructions of the Chief Minister of Uttar Pradesh to give top priority to clear cane dues of farmers, the Cane Department of UP is putting all efforts for speedy cane price payment.

Commissioner, Cane and Sugar, Sanjay R. Bhoosreddy said that 85 percent amount of sale value of sugar, molasses, bagasse, and press mud produced in sugar mills in UP has been tagged for the cane price payment. The  mills in UP where cozen and distillery units are established and are utilising their own produced bagasse and molasses have to pay equivalent amount of 85 percent of the value of molasses and bagasse from the distillery cogeneration units .

Further 30 percent of the value of ethanol produced from C-grade molasses has been tagged for the cane price. The sugar mills, which are making ethanol from B- heavy molasses, will have to pay 55 percent value of  ethanol produced and the mills making ethanol directly from sugarcane juice will have to pay 80 percent of the value of ethanol produced for cane price payment.

Bhoosreddy also informed that an ‘Escrow Account’ had been opened in all the sugar mills of UP for cane price payment, which is jointly operated by sugar mill occupier and District Cane Officer/SCDI. Instructions have been issued that for those sugar mills which are not having cash credit limits in bank, the sugar, bagasse, molasses and press mud will be kept in joint custody of D.C.O./S.D.M. and sugar mills. The 85 percent of sale value of these products will be deposited in ‘Escrow Account’ for cane price payment.

Bhoosreddy conveyed that this year some sugar mills in UP were also producing sanitiser, and generating additional income. Therefore, in order to ensure cane price payment to the farmers, orders have been issued that for those sugar mills producing sanitiser, 65 percent of the sale value of ethanol used in the production of sanitiser will have to be paid for cane price payment.