Bajaj Sugar Mill in Pilibhit Announces Closure with Massive Cane Dues
In a significant development impacting the agricultural sector, the Bajaj Hindustan Sugar Mill located in Barkhera, Pilibhit district, has officially declared its shutdown. This closure comes amidst a staggering Rs 152.9 crore in pending cane dues, as confirmed by official records from the district cane department. The mill, which commenced operations on November 15 last year, procured a substantial 42.02 lakh quintals of sugarcane valued at Rs 166.3 crore. However, it paid only Rs 13.4 crore during the crushing season, representing a mere 8.5% of the total value of the cane purchased, leaving farmers in financial distress.
Allegations of Manipulation and Legal Violations
Farmers have raised serious allegations of manipulation in the tagging system, a mechanism mandated by the state government. Under this system, sugar mills are required to utilize proceeds from the sale of 85% of their sugar stocks and by-products—such as molasses, bagasse, and pressed mud—to clear cane payments. The farmers claim that this process has been compromised, leading to delayed and insufficient payments. Furthermore, they accuse the mill of repeated violations of the Uttar Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1953, which stipulates that payments must be made within 14 days of procurement. They argue that the state government has failed to protect their interests, exacerbating the crisis.
Activist Response and High Court Order Cited
In response to the closure, Gurpreet Singh, the district president of the Rashtriya Kisan Mazdoor Sangathan (RKMS), has taken proactive steps by writing to District Magistrate Gyanendra Singh via email and social media appeals. He has called for a thorough inspection of the mill's sold and existing stocks, along with a review of how sale proceeds were utilized. V M Singh, the national convener of RKMS, highlighted a critical legal precedent, referencing a division bench of the Allahabad High Court order dated June 26, 1996. This order directs that sugar mills must continue crushing operations as long as cane remains in the fields, a mandate that the mill's closure appears to violate. Singh also pointed out that banks have denied approval of cash credit limits to Bajaj group mills, and the state government owes Rs 1,900 crore to the group as subsidy for setting up 12 sugar mills in Uttar Pradesh, adding layers to the financial complexities.
Alternative Options and Official Statements
District Cane Officer Khushi Ram Bhargav provided insights into the situation, noting that farmers have been supplying cane to Noble Sugar Mill, a raw sugar manufacturing unit that offers immediate cash payments. However, he clarified that this unit is not recognized by the state government as an official sugar mill, limiting its regulatory oversight. Despite this alternative, Singh emphasized that farmers' freedom to choose where to sell their produce does not absolve Bajaj Sugar Mill from adhering to the High Court order, underscoring the legal obligations at play.
The closure of the Bajaj Hindustan Sugar Mill underscores broader issues in the sugar industry, including financial mismanagement, regulatory failures, and the plight of farmers awaiting rightful payments. As the situation unfolds, stakeholders are calling for urgent interventions to address the pending dues and ensure compliance with legal frameworks to safeguard agricultural livelihoods in the region.
