Sugar mill buying canes at rates lower than those fixed by govt

BY BIJAY KUMAR SHAH,Dhalkebar, Dec. 26: Baba Baijunath Sugar Mill in Mithila Municipality-2 of Dhanusha district has been found purchasing sugarcane at Rs. 65 less per quintal than the government mandated price. The government has set the minimum purchase price for sugarcane at Rs. 655 per quintal. Of which, Rs. 585 is to be paid by sugar mills, while remaining Rs. 70 is provided as a government subsidy. However, the mill has been buying sugarcane from farmers at Rs. 590 per quintal. 

Locals claim that the mill is purchasing sugarcane at a price lower than the government-mandated rate, promising early payments but failing to adhere to regulations. They also allege that the mill does not provide receipts for the sugarcane purchases.

Manoj Sha, an employee at the mill’s weigh station, said that they were purchasing sugarcane at Rs. 590 per quintal. He said, "We pay the amount within four days of weighing the sugarcane. However, we do not issue receipts for the purchases."Local resident Jagendra Mahato said that sugarcane farmers were compelled to sell their produce as soon as it was ready in the fields, leaving them vulnerable to exploitation. He alleged that the mill was purchasing sugarcane illegally due to a lack of monitoring.

According to Mahato, the nearby Himalayan Sugar Industry in Siraha adheres to the government-mandated price for purchasing sugarcane, while Baba Baijunath Sugar Mill buys it at Rs. 65 less per quintal. He added that when farmers sell sugarcane through such illegal means, they miss out on government subsidies and the benefits provided by the industry to sugarcane growers.Another local, Dineshwar Mahato, accused Baba Baijunath Sugar Mill of spreading false rumours about other sugar mills to purchase sugarcane at a lower price. He said that the mill misled farmers by alleging that other mills delay payments and that government subsidies take six months to a year to process, using middlemen to buy sugarcane at reduced rates.

Himalayan Sugar Industry's senior manager, Satendra Singh, said that the practice of purchasing sugarcane without issuing receipts was unethical. He emphasised the need for monitoring by relevant authorities to control such activities. Dhanusha's Chief District Officer, Rajuraj Kadaraiya, stated that an immediate investigation would be conducted and action taken on the matter.