U’khand sugar mills owe farmers Rs 423 cr: RTI

Times of India: Nainital: Wednesday, 07 October 2015.

The sugar mills of Uttarakhand owe state farmers Rs 423 crore, the agriculture department has admitted in response to a Right to Information petition filed by Ramesh Chandra Joshi, district coordinator of the Indian Farmers' Union.

There are nine sugar mills in the state - two of these are in the public sector. Farmer unions have warned the government that if these dues are not promptly cleared, they will go on protest. Joshi, who filed the RTI petition, told TOI that more than a lakh farmers are affected by the pending dues, left with little money for the new season which is now upon them.

"With so much delay in payment and the arrival of the sowing season, farmers hang in limbo. From where will we get money to invest in the crop? If the government fails to pay heed to our grievances, we will start state-wide protests," Joshi said.

The RTI reply disclosed that the nine mills had together bought 351 lakh quintal sugarcane crop; money had been paid for only 56% of this stock.

Officials said, however, that the issue would soon be resolved. "We have already sent letters to higher authorities in the government. The matter will be taken care of soon, we hope," said RB Verma, an official of the rank of assistant commissioner in the state agriculture department.

Thousands of farmers protested last month at Kashipur town over the delay in release of money. Two government-sector sugar mills have to pay more than Rs 50 crore, and four private mills have Rs 231 crore pending. Three cooperative mills owe farmers Rs 134 crore.

Farmers are arranging funds from different sources. Some of them, given the distress situation, are likely to fall prey to money lenders.

Virendra Sanwal, a farmer from Kashipur, Udham Singh Nagar, said, "Rs 5 lakh is due to me from two mills. Now, I have to make preparations for the next season. I need money for the new crop. I expect I'll have to borrow it and shell out a large sum as interest. If I don't, I can't say how my family will survive."