In the run-up to the 2011-12 sugarcane crushing season, the Uttar Pradesh farmers have reiterated their demand of over 50 per cent increase in cane price.
They want the cane price to be fixed at Rs 300-350 per quintal, even as industry maintained that under prevailing circumstances, it could hardly pay last year’s level.
During 2010-11, the state advised price (SAP) of cane was Rs 205-210.
UP cane commissioner Kamran Rizvi recently held a crucial meeting with farmers, cane societies and industry representatives as a prelude to SAP fixation. The final decision would be taken in a high-level committee headed by the chief secretary, which is likely before Diwali.
“The sugar prices are hovering around Rs 2,750 per quintal and the world market, including India, is moving towards a sugar surplus season. There is all likelihood that the retail prices would depress. In such a scenario, industry may not be in a position to pay any further hike in cane price,” a sugar industry official told Business Standard.
Farmers’ leaders from western UP raised their concern against the “confronting attitude” of private sugar mills, complains of under-weighing and pathetic position of cane societies due to ‘indifferent attitude’ of the state government.
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“The farmers are unanimous in demanding Rs 300-350 per quintal this season on account of substantial increase in input cost especially labour, which has increased almost 50 per cent this year. Besides, fertiliser, insecticide, weedicide and diesel have also registered increase in the range of 16 to 25 per cent,” Kisan Jagriti Manch president Sudhir Panwar said.
Panwar stated that Commission for Agricultural Costs and Prices (CACP) and the Centre on account of current prices had recommended 17 per cent hike in FRP, and a similar formula in SAP would result in hike to Rs 240-245/quintal.
In 2011-12, UP sugarcane acreage is estimated to rise 7.2 per cent to 2.252 million hectares (MH) compared to 2.101 MH in 2010-11.
Sugarcane is one of the most important cash crops for UP and the state’s economy depends upon it to a large extent. While over 4 million farmers’ families are engaged in sugarcane farming, UP’s biggest organised industrial sector comprising 125 odd sugar mills is based upon it.
The total cane requirement of all the operational sugar mills is over 80 million tonnes.
For 2010-11, total sugarcane dues were in the region of Rs 13,000 crore, excluding the local economy of gur and khandsari units.