Cane farmers look to govt for solution to delayed payments from sugar mill

Even though being run under the supervision of the Haryana Government since 2019, Naraingarh Sugar Mills Limited’s delayed payments continue to be a matter of concern for sugarcane farmers.

Haryana CM Nayab Singh Saini, during the Jan Ashirwad Rally in Naraingarh last year, had expressed concern over the inconvenience caused to farmers due to delayed payments by the private sugar mill. He had promised to set up a cooperative sugar mill if voted to power.

Since the CM belongs to Naraingarh, farmers have high hopes that he would find a permanent solution in this regard.

Sugarcane farmers of Ambala, Panchkula and Yamunanagar’s Radaur deliver sugarcane at the mill. However, the farmers are not convinced with the promise of setting up a cooperative sugar mill and have been requesting the government to take over the sugar mill and bring its operations under HAFED. Around 7,000 farmers and 700 employees are associated with the sugar mill.

Bhartiya Kisan Union (Charuni) spokesman and sugarcane farmer from Naraingarh, Rajiv Sharma, said, “Sugarcane farmers are forced to wait for the next season to begin to get the dues of previous year cleared. Due to the delayed payment, the farmers — over the last couple of years — have started diverting sugarcane to other mills and even delivering their produce to crushers at cheaper rates as they need money to meet expenses.”

“The government and mill authorities must understand that the farmers also need money to clear their dues and labour charges. Ever since the mill has started operations under the supervision of the government, the payments have improved. The farmers are of the view that the government should continue to run operations and clear pending dues within 14 days of purchase as per norms,” he said.

Vinod Rana, president of Ganna Kisan Sangharsh Samiti, said, “Due to poor management in the past, Naraingarh Sugar Mills has been facing huge financial crisis and cases are pending in various courts. The Supreme Court, in its order in May 2022 on a writ petition (civil), had constituted a committee. The committee in August 2023 attached the properties of Naraingarh Sugar Mills Limited. We have requested the CM that whenever the sugar mill is auctioned, the government should buy it and give it to the HAFED for operations.”

“With a sugar mill already in operation in Naraingarh, setting up another mill here is not an easy task as every sugar mill has its own assigned area. We came to know that a location near Punjab was identified for the cooperative sugar mill, but it will not be beneficial for farmers of Haryana. It will also cost around Rs 600 crore,” he added.

Rana said they had also requested the CM to get the pending dues of electricity of the sugar mill released. “In this season, the Naraingarh Sugar Mills produced and sold electricity worth Rs 14 crore to the state government. The payment of electricity is used in clearing the dues of farmers. For the last three years, the government has been clearing 50 per cent of the power dues due to pending government loan on sugar mills. If the payment of Rs 7 crore (50 per cent of the dues) is cleared soon, it will be beneficial for the farmers,” he added.

During the crushing season 2024-25, over 42 lakh quintal sugarcane worth over Rs 168 crore was crushed, and dues of around Rs 17 crore of the season are pending.

An official in the Agriculture Department said a survey regarding setting up a cooperative sugar mill at a couple of sites, including a land near Punjab border, was conducted and report was sent to the authorities for action. The matter is pending at the government level. Sugarcane is cultivated on around 10,000 hectares in Ambala.

Meanwhile, unit head of Naraingarh Sugar Mills Limited VK Singh said, “Currently, the dues of around Rs 17 crore are pending. The sugar mill is expected to receive a payment of electricity dues from the government and the pending dues will come down to around Rs 10 crore. All efforts are being made to clear the farmers’ dues.”

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