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Lucknow: The sugar industry in India is struggling to revive as it is burdened with the surplus sugar stock and mounting cane arrears. To give respite up to some extent, Uttar Pradesh government plans to introduce a marginal cess on sugar to fund the beleaguered sector to handle distress. The proposal was advocated at the UP CM Yogi Aditynath’s review meeting of the sugarcane and excise departments.
The proposal aims to bring the sugar industry in the state out of the crisis, and also to give aid to sugarcane farmers who have been struggling to get cane arrears.
According to the reports, the fund will also be utilised for other purposes such as building toilets, restrooms, and drinking water for sugarcane farmers.
The proposal has got an in-principle approval in the meeting yesterday and will be further sent for legal vetting before the modalities are finalised, said Cane commissioner Sanjay Bhoosreddy said while talking to one of the leading news websites.
CM Yogi said that Rs 68,828 crore has been paid to cane farmers in the last two years. He said that the closed sugar mills of Majhola and Rasda Sahakari mill should be restarted soon. The tender process to restart these two mills has already begun. He also issued orders to speed up the work of Dhuripar sugar mill.
The sugar mills in UP are yet to pay over Rs 10,000 crores to the cane farmers during the 2018-19 crushing season.