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The prevailing crisis in Uttar Pradesh sugar sector has resulted in dwindling cane acreage in the state.
UP, which is India's largest sugarcane and second largest sugar producer, has been facing string of troubles that manifests every year in rising cane arrears, court cases, lodging of cases against private mills, stand off between mills and state government.
As per UP sugarcane department, the sugarcane acreage in UP is estimated to fall 10 percent this from 23.60 lakh hectares (LH) in 2013-14 to 21.24 LH.
Experts have cited piling of arrears during successive years as the main reason for the disinterest amongst growers in cane farming.
The private mills in UP still have almost Rs 5,000 crore as farmers' outstanding dues to be settled with Allahabad High Court already hearing a case in the matter.
In fact, the next date of hearing in the case is scheduled for tomorrow.
"The rising spectre of arrears is the main reason for falling acreage in UP. The cane farmers are shifting to paddy and fodder crops, which provide competitive yet prompt payments," Kisan Jagriti Manch president Sudhir Panwar told Business Standard.
The mills have been claiming high cane price in UP was the primary reason for mounting arrears. During 2013-14, the state government had fixed Rs 280/quintal as the price payable for common variety of cane.
Meanwhile, the department had completed its cane area survey for the2014-15 crushing season. Cane commissioner Subhash Chandra Sharma had also constituted a vigilance team for on the spot inspection and verification of data.
The survey identifies and weeds out 'sugarcane mafia', which refers to local syndicates/individuals who register themselves as farmers. During crushing season, these elements procure the cash crop from small farmers at cheaper rates and pass on the same to the sugar mills at the government ascertained rates, which are higher.
During 2013-14, the 119 mills in UP had produced 649.54 lakh quintals (LQ) of sugar by crushing over 7,000 LQ of cane. The combined crushing capacity of all the mills in UP, including 95 private and 23 cooperative mills, is 7,51,265 tonnes crushed per day (TCD).
