UP repeals sugar incentive scheme; to rope in pvt players

Lucknow, Jun 1 (UNI) Expressing concern over the accumulating losses to the tune of Rs 13,500 crore incurred by the state sugar mills, the Uttar Pradesh government today announced a policy decision to repeal existing sugar incentive scheme and decided to rope in private players to run the loss making sugar mills.

A new police would be announced soon in this regard as per the decision of the state cabinet meeting chaired by Chief Minister Mayawati here this afternoon.

Briefing reporters, state cabinet secretary Shashank Shekhar Singh said the decision would aim at minimising the lossess of the sugar mills while ensuring that the cane farmers got timely and adequate payment of their produce.

It had been observed that various sugar mills, whether under UP Sugar Fedration or under Cooperatives, owed Rs 3,500 crore to the cane farmers.

The new policy which would include payment of farmers' dues as well as defining the proposed role of the private parties would soon be placed before the state cabinet for necessary approval, Mr Singh said. Many ways were being contemplated to improve the performance of sugar mills, including handing over some sugar mills to the private sector.

''The new government is of the view that the existing policy is not suited for the growth of the sugar industry as well as ensuring welfare of the farmer community hence the new policy is proposed by the state cabinet,'' he said.

The cabinet also deliberated at the provisions of incentive policy under which the infrastructure cost was being subsidised by the state government and the new provisions had to be evolved to make the sugar sector more viable and farmer-friendly, he said.

The state cabinet also decided to effect some changes in Diversified Agriculture Support Project (DCSP), presently implemented in 35 districts, involving private people including commission agents in purchase of wheat. The project is currently been implemented under the umbrella of Mandi Parishad and role of private people was limited to the areas of infrastructure, seeds and fertilizers.

UNI