Are Sugar Mill Officials in Trouble Over Unpaid Dues to Cane Farmers?
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Synopsis
In a stunning crackdown, Uttar Pradesh Police have launched legal actions against Yadu Sugar Mill officials for failing to pay farmers nearly Rs 30 crore in dues. This situation raises concerns about the integrity of sugarcane operations in the state. What will happen next in this unfolding drama?
Key Takeaways
- Uttar Pradesh Police has initiated legal action against sugar mill officials.
- Outstanding dues to farmers amount to nearly Rs 30 crore.
- Officials face accusations of economic exploitation and fraud.
- Both mills failed to pay farmers within the required 14-day period.
- Legal consequences are looming if payments are not cleared soon.
Lucknow, Sept 3 (NationPress) In a decisive move against sugarcane mill operators engaging in questionable practices, the Uttar Pradesh Police have initiated legal action against five officials from Yadu Sugar Mill for their alleged negligence in settling outstanding payments to sugarcane farmers, which total nearly Rs 30 crore. The FIR targets Kunal Yadav, the director of the Badaun-based sugar mill and son of former MP DP Yadav, alongside several high-ranking officials of the firm.
As reported by the Deputy Commissioner of the Sugarcane Committee, Rajesh Mishra, the managing director Suraj Yadav, nominee Suresh Chandra Johri, unit head DP Singh, and senior general manager Brajesh Sharma have been charged with failing to reimburse farmers for their sugarcane deliveries.
Those implicated face accusations of exploiting farmers economically, disregarding District Magistrate orders, and committing fraud. Authorities stated that interrogations are ongoing, and appropriate measures will be taken based on the results.
The FIR was filed due to their alleged refusal to settle outstanding payments and neglect of repeated reminders from relevant authorities, including the District Magistrate, Commissioner, and sugarcane committee secretaries.
Rajesh Mishra informed reporters that both branches of Yadu Sugar Mill – located in Nevli (Kasganj) and Bisouli (Badaun) – failed to adequately compensate farmers post-purchase of their sugarcane within the mandated timeframe.
He noted that while both mills processed sugarcane, they did not remit payments to farmers within the specified 14-day period. The Bisouli mill processed sugarcane valued at Rs 95.18 crore, while the Nevli mill handled Rs 55 crore, yet only paid 67% to farmers, leaving a significant balance unpaid despite numerous notices.
According to Bisouli SHO Harendra Singh, arrests will commence if the mill proprietors do not rectify the outstanding payments promptly.
Point of View
I emphasize the importance of holding agricultural entities accountable. This case highlights the need for transparency and fairness in dealings with farmers, who are critical to our economy. It's essential that we support farmers' rights and ensure they receive timely payments for their hard work.
NationPress
03/09/2025
Frequently Asked Questions
What are the allegations against Yadu Sugar Mill officials?
Yadu Sugar Mill officials are accused of failing to pay sugarcane farmers nearly Rs 30 crore in dues, violating District Magistrate orders, and committing fraud.
What actions have the police taken?
The Uttar Pradesh Police have lodged FIRs against five officials, and interrogations are ongoing to determine further actions.
What is the financial status of the mills?
The Bisouli mill processed sugarcane worth Rs 95.18 crore and the Nevli mill Rs 55 crore, but only 67% of payments were made to farmers.
What happens next for the mill officials?
If the outstanding dues are not cleared soon, police indicated that arrests will commence.
How have farmers reacted to this situation?
Farmers are understandably distressed due to the unpaid dues, and many are calling for justice and timely payments.
