Dehradun, Jun 25 (PTI) The Uttarakhand government has directed officials of sugar mills in the state to pursue the issue of payment of nearly Rs 2.5 crore of subsidy claim with the Sugar Directorate in New Delhi. During a meeting with sugar officials, the state’s additional Secretary, Sugarcane Development and Sugar industry, Vinod Sharma was told that subsidy claim of three sugar mills of cooperative and government sector in the state was pending. While the Bajpur sugar mill has a claim of Rs 2.17 crore, Doiwala and Kichchha sugar mills have claims worth Rs 16 lakh and Rs 26 lakh, respectively. Nodal officer of Uttarakhand Sugars Kamlendra Rahinwal said all the six government and cooperative sugar mills of Uttarakhand crushed 158.86 lakh of sugarcane producing 14.40 lakh quintal of sugar during the crushing season of 2011-12. A payment of Rs 258.33 crore has already been made to sugarcane growers against the total payment liability of Rs 396 crore, which is 65.23 per cent of the total amount to be paid, Rahinwal said. The remaining payment of Rs 137.67 crore is still due on sugar mills, he added. The difference in production cost of the sugar at around Rs 3,500 per bag and selling rate at Rs 2,900 per bag is making it difficult for sugar mills to clear the dues of the sugarcane growers, the officials said during the meeting. Moreover, the imposition of 2 per cent VAT on sale of sugar also worsened the financial condition of sugar mills, they added. Meanwhile, Sharma also directed the officials to complete the repair work of sugar mills before the crushing season of sugarcane starts in November.
Src: IBN Live