INDIA: UP mills demand bailout package

Published: 08/06/2018, 11:11:31 PM

Uttar Pradesh Sugar Mills Association (UPSMA) has shot off a letter to state Chief Minister Yogi Adityanath, demanding a financial package to bail out the sugar industry in the state, according to the United News of India.

The Association has demanded that the state government should at least give INR40 (US$0.58) per quintal financial assistance to bail out the private sugar mills who have around INR110 billion pending dues of the farmers in the state during the just concluded 2017/18 crushing session.

The letter written by UPSMA president C B Patodia to the CM on Monday clearly stated that the government should give the gap of INR40 per quintal immediately so that the preparation for the coming crushing season starts in the sugar mills.

"Inadequate or token assistance from the state government will not solve the problem and instead it will rather complicate the already complex issue for the next season as well," he said .

Patodia said if the state government provide the demanded financial assistance then the mills will approach the banks for part funding the balance deficit.