Sugar mills in Uttar Pradesh owed 2.71 bln rupees as interest on arrears to be paid to sugarcane farmers as of 3 July.

Uttar Pradesh government in April had directed sugar mills in the state to pay 15% interest on cane arrears for the 2016-17 (Oct-Sep) marketing season. According to the subsection 3 (3A) of the Sugarcane Control Order, 1966, where a producer of sugar fails to make payment for the sugarcane purchased within 14 days of the date of delivery, he shall pay interest on the amount due at the rate of 15% per annum for the period of delay beyond 14 days. If sugar mills fail to do so, the state government will issue recovery certificates against them. Mills in the state crushed 82.44 mln tn cane this season, compared with 64.23 mln tn in the year-ago period.