Date:03/01/2008 URL: http://www.thehindubusinessline.com/2008/01/03/stories/2008010352190300.htm

Back Sugar mills owe UP farmers over Rs 900 cr

Harish Damodaran

New Delhi, Jan. 2 Private sugar mills in Uttar Pradesh currently owe cane growers over Rs 900 crore as payment arrears against the State Advised Price (SAP) for the 2006-07 season.

During the season (October-September), the mills bought Rs 9,091.94 crore worth of cane, whereas they have so far disbursed Rs 8,190.34 crore. That translates into arrears of Rs 901.60 crore.

Heading the arrears list is Bajaj Hindusthan Ltd (Rs 324.28 crore), followed by Balrampur Chini Mills (Rs 87.35 crore), the K.K. Birla Group (Rs 66.68 crore), Dhampur Sugar (Rs 66.07 crore), Triveni Engineering (Rs 55.43 crore), U.K. Modi Group (Rs 33.61 crore), Uttam Sugar (Rs 30.81 crore) and Simbhaoli Sugars (Rs 25.18 crore).

Full payment

On the other hand, there are companies/groups that have made the full SAP-based cane payment. They include Dwarikesh Sugar Industries, Sir Shadi Lal Enterprises (Shamli and Unn factories), Parle Biscuits (Parsendi unit), the Jagran Group’s Todarpur mill (recently acquired by India Glycols), L.H. Sugar Factories (Pilibhit), United Provinces Sugar Company (Seorahi), Kesar Enterprises (Baheri), and Rana Sugars (Belwara).

Then there are those that have paid up 95 per cent or more: Mawana Sugars (Rs 24.44 crore), DCM Shriram Consolidated (Rs 15.04 crore), DSC Shriram Industries’ Daurala unit (Rs 7.32 crore) and Dalmia Cements Group (Rs 5.48 crore).