Mahalaxmi Sugar Mill denies to pay minimum price of sugarcane

KAPILBASTU, June 10 :

Local farmers have started protest against the management of Mahalaxmi Sugar Mill after the mill refused to pay the minimum price of sugarcane fixed by the government to them.

A group of farmers from Jawabhari has been obstructing the supply of sugar from the mill´s warehouse after the management refused to pay them Rs 76 per quintal of sugarcane.

The mill had paid farmers Rs 400 per quintal as advance payment before the Ministry of Industry (MoI) fixed minimum price at Rs 476 per quintal about a month ago. The price was fixed after several rounds of negotiations at the central level.

The farmers resorted to protest after the management pasted a notice at the mill´s entrance, saying that it was unable to pay the remaining amount to the farmers.
Around 500 farmers are yet to receive the remaining payment from the mill.

Birendra Kumar Srivastav, administrative manager of the mill, said they would not make remaining payment to the farmers as other mills in eastern and central Tarai also have not made such payments. He also argued that the mill has already signed another agreement with farmers as per which the mill will not be liable to make the remaining payment.

However, sources said the mill signed the agreement with only a handful of farmers at the District Administration Office.

Meanwhile, Mahalaxmi Sugar Mill has registered a complaint at the District Administration Office on Monday, seeking security for unhindered supply of sugar from their warehouse.

Chief District Officer of Kapilvastu Binod Prakash Singh has directed the police administration to implement the agreement instead of implementing the minimum price fixed by the industry ministry.

The mill owes around Rs 130 million to altogether 6,000 farmers in its catchment area. The mill has sugar worth Rs 280 million in stock, according to the mill officials.


Locals start clearing sugarcane fields

Local farmers have started clearing their sugarcane field after Reliance Sugar and Chemicals Sugar Mills of Maniharwa refused to buy their sugarcane.
Farmers said the mill had made verbal commitment to purchase sugarcane. Now the mill has refused to buy sugarcane despite repeated pleas of farmers.

Farmers have started clearing their sugarcane plants which have already gone dry. Hari Raj Raut of Maniharwa said it feels sad to clear sugarcane crop which he had planted in the hope of getting better earning compared to traditional paddy crop.

Local farmers have already cleared sugarcane crop planted in 12 bighas of land. Each kattha produces around 35-40 quintals of sugarcane.

Source: Republica