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Even as the 2012-13 sugarcane crushing season rounds off in Uttar Pradesh, the total payments due to farmers have already exceeded the state government estimates set last year.
Against the sugarcane payments pegged at Rs 21,500 crore for the current season, total sugarcane dues have already breached Rs 22,402 crore, which is about 4.2% higher. With 4-5 sugar mills still crushing and expected to continue for about a week, the total payments would only rise.
The major factor for higher payment levels is the hike of almost 17 % in the state sugarcane price, known as State Advised Price (SAP), which stands at Rs 280/quintal for common variety vis-à-vis Rs 240/quintal over previous year.
The prices for early and rejected/unsuitable varieties of cane had been hiked to Rs 290/quintal and Rs 275/quintal compared to Rs 250/quintal and Rs 235/quintal respectively on December 7, 2012.
During 2011-12, the total cane payments were to the tune of Rs 18,200 crore in UP.
However, the farmers are yet to be paid in full. So far, the 124 sugar mills in UP had paid cane growers nearly Rs 15,604 crore, leaving almost Rs 6,800 crore in dues.
Last month, a public interest litigation (PIL) had been filed in the Lucknow Bench of Allahabad High Court by V M Singh of Rashtriya Kisan Mazdoor Sangathan over cane arrears. It is posted to May 16 for next hearing.
The petitioner had prayed for immediate settlement of arrears, 15% interest payment over delay and relief to cane farmers on their agricultural loans until their dues were paid by mills.
UP Sugar Mills Association has been urging the state to provide relief with regards to the mounting arrears. However, the Akhilesh government is yet to take any decision even as the millers remain sanguine.
Meanwhile, the sugarcane department had sought cane arrear payment schedules from the mills to which some had already responded, an official source told Business Standard.
Earlier, recovery certificate had been issued against a mill in Aligarh. “The court had ordered for day to day payment to the unit, which it failed to comply with, as such the RC was issued,” he informed.
Meanwhile, sugar mills in UP had produced about 7.46 million tonnes (MT) of sugar after crushing over 81.16 MT of sugarcane with recovery percentage standing at 9.19%.
