The Mayawati government in Uttar Pradesh on Friday decided to scrap the sugar policy announced by the previous Mulayam Singh regime, besides consider selling loss making sugar mills run by the state Sugar Corporation.
The state Cabinet, in its meeting chaired by Chief Minister Mayawati on Friday, decided to either privatise the loss making mills or bring them out of the red, Cabinet Secretary Shashank Shekhar Singh said in Lucknow.
He said the mills had incurred a loss of Rs 3,500 crore, besides owing Rs 3,400 crore to the farmers as cane dues.
"Despite a budgetary support to the tune of Rs 1,400 crore, the mills could not be brought out of the red nor the dues of the farmers paid," Singh said.
He said the sugar policy of the previous Samajwadi Party regime was not found to be practical in resolving the problems and hence the Cabinet has decided to scrap it and formulate a new policy.