Cash crunch to delay sugarcane farmers’ dues

SURAT: More than 80,000 sugarcane farmers of Surat and Tapi districts would receive second instalment of payment for their produce from sugar factories either in second or third week of May.
The delay in payment is due to prevailing cash crunch in banks. RBI will be releasing money to Surat District Cooperative Bank by May 10 which is expected to give Rs500 crore to sugar cooperatives and Rs300 crore to SUMUL for distribution among farmers and cattle raisers.
“Lack of cash was an issue but the RBI officials have promised us that there would not be a problem at all. We have already made a request and would be getting the money required for payment to sugarcane farmers and cattle raisers by May 10,” Surat District Cooperative Bank MD Indersinh Mahida said. The payment distribution is expected to be completed to more than 80,000 farmers and 1.5 lakh cattle breeders by June 10.
Generally sugarcane farmers get their money from sugar factories in four instalments. The second instalment becomes due on May 01. This time out of eight sugar cooperatives of Surat and Tapi, three stopped crushing by April 10 and others on April 30. Nearly 64 lakh tonne of sugarcane was crushed out of the total of 100 lakh tonne produced in Gujarat by the factories.
“We need about Rs625 crore to be paid at the rate of Rs1,000 per tonne. However, not all have accounts with us. We need about Rs500 crore for distribution to sugarcane farmers. Similarly Rs100 crore is needed for SUMUL for regular payment to cattle breeders and Rs200 crore as special payment to them,” Mahida said.
by via Surat News, Latest Surat News Headlines & Live Updates - Times of India