No GST is applicable on Jaggery and Khandsari manufacturers

The Piparaich and Munderwa sugar mills in eastern UP would become operational in the near future while Manjhola Sugar mill be run on PPP model. In order to promote Khandsari units, the government has also relaxed its policy.

This was stated by Sugarcane minister Suresh Singh Rana while briefing newsmen at Gannna Sansthan in Lucknow on Thursday.  He informed that farmers were now did not need licenses for producing jaggery and ‘Rab’ for self use by vertical crusher and power driven vertical crusher. 

“No GST is applicable on Jaggery and Khandsari manufacturers. The power given to state under Sugarcane Control order, the word ‘Gur’ is being removed from UP Khandsari License Order and UP Sugarcane Control Order thus making all Gur manufacturing crushers and power crushers free from licenses and development commission,” he announced.

The minister said that the government aimed at all round development of Gur and the development commission will help in proper disposal of the problems of cane farmers. 

“The decision will encourage development of Khandsari in the state and create new job opportunities in rural area besides timely disposal of excess sugarcane available with farmers due to increased production,” he said.

Rana said that sugarcane produce has increased in the state and UP was producing 102 lakh tons presently. He said the government was mulling on running co-operative mills by providing technical help to increase crushing capacity of these sugar mills. 

“There are some sugar mills like the one in Chhata, which have become white elephants for the government and hence it was being planned to do something concrete in this direction,” he said.

The minister said the government was planning to export sugar due to excess production in the state. “The government was also improving Molasses policy looking for alternatives of Ethanol on the lies of Brazil for which a pilot project could soon be launched,” he said. 

About cane arrears, Rana said that the government had paid Rs 18327 crore to cane growers in 2017-18 fiscal and the target was to pay Rs 18881 crore to them in 2018-19 fiscal. 

Replying to a question that the arrear for current fiscal was very high, the minister said that the state witnessed excess crushing and that was why the counts were high this year. “It will come down after the payment for current fiscal was completed,” Rana said.