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Ten sugar mills in UP to pay 12% simple interest on delayed payment to farmers -Deepa Jainani

-Financial Express

Under the Act, sugar mill owners are bound to pay interest if they fail to make the payment to farmers within 14 days of purchase.

Complying with an Allahabad High Court order, the Yogi Adityanath government has asked 10 sugar mills in the state to pay 12% simple interest to the farmers for the late payment of their sugarcane dues for three financial years: 2012-13, 2013-14, and 2014-15.

These 10 mills will have to pay the interest for the years when they were making profits. Hence, the three units of Simbhaoli Sugars – Simbhaoli, Brijanathpur and Chilwaria —will have to pay interest for the crushing season 2012-13, while JHV Sugars’ Gadaura sugar mill, Laxmiji Sugar’s Moradabad unit and Kanoria Sugars’ Captanganj unit will have to pay interest for the 2012-13 and 2013-14 seasons. Sherwani Sugar’s Neoli unit, KM Sugar Mills’ Motinagar unit and United Province’s Seohari sugar mill will have to pay interest for 2013-14. Apart from this, one UP sugar cooperative federation’s unit, Sneh Road, in Najibabad will also have to pay 12% interest for 2012-13.

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