The financial situation of Uttar Pradesh-based Mawana Sugars and Modi Sugar Mills, which together owe Rs.837 crore dues to sugarcane farmers, is bad and they may not be able to clear the arrears by even selling their assets, Indian Sugar Mills Association (ISMA) said on Thursday.
“Mawana and Modi have already approached the Board for Industrial and Financial Reconstruction (BIFR), and they will find it hard to clear the cane arrears,” ISMA Director-General Avinash Verma told PTI.
“Even if they sell their assets, they will not be able to clear the entire dues to sugarcane growers,” he said.
Simbhaoli Sugar Mills, which owes about Rs.225 crore, is also finding tough to arrange funds to clear the cane arrears but the company has not yet approached BIFR, he added.
Stating that cane arrears in Uttar Pradesh are being cleared fast, Mr. Verma said total dues had come down to below Rs.3,000 crore so far.
