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The sugar output in Uttar Pradesh, the country’s second largest sugar producer, has breached a Million Tonne (MT) mark in the ongoing 2013-14 crushing season.
During 2011-12 and 2012-13, UP sugar production stood at 6.97 MT and 7.47 MT respectively.
As per latest data, 119 operational mills have collectively produced 1.08 MT after crushing about 12.29 MT of sugarcane.
However, the sugar production is almost 40% less compared to the last crushing season so far. During the corresponding period, the mills had produced nearly 1.78 MT of the sweetener.
The lower sugar output is due to the delayed start of mills owing to prolonged standoff between private millers and the government over the contentious cane price issue.
The private mills, which account for 95 operational mills out of 119 units in UP, were unwilling to start crushing unless the state ‘rationalised’ cane price by linking it to the prevailing sugar price.
The pressure tactics of the state failed to convince the millers. Finally, the crisis was defused when the government allowed certain sops and exemptions to mills. The government allowed millers to pay the cane price in two installments of Rs 260 and Rs 20 per quintal.
The state also conceded to incur cane societies’ commission on behalf of mills. In the recent winter session of state assembly, the Akhilesh Yadav government had made a provision of Rs 126 crore for paying commission.
Meanwhile, the mills have paid about Rs 410 crore to cane farmers against arrears of Rs 1,000 crore in the current season. In fact, total arrears stand at much higher level of Rs 3,380 crore, however, millers are allowed 14 days to settle cane dues.
Besides, the private mills also have to clear cane arrears of Rs 1,984 crore pertaining to 2012-13 crushing season.
