On the back of remunerative sugarcane prices received by Uttar Pradesh farmers during the 2009-10 crushing season, the cane acreage is likely to increase by 20 per cent in the 2010-11 season.
The total sugarcane area during 2010-11 is touted to touch 2.15 million hectares.
Sugarcane area in UP had successively been shrinking till last year due to the delay in cane payment, confusion on price and multiple litigations. However, things have turned positive for India’s largest cane producing state.
According to official statistics, the cane acreage had stood at 1.79 million hectares during 2009-10 against 2.14 million hectares and 2.85 million hectares in 2008-09 and 2007-08 respectively.
The resultant drop in sugarcane production to 98 million tonnes during 2009-10 from 110 million tonnes in 2008-09 had prompted the UP sugar mills to pay almost Rs 280-300 per quintal for cane.
This was much higher than the Fair and Remunerative Price (FRP) of Rs 130 linked to 9.5 per cent recovery rate fixed by the Centre and the State Advised Price (SAP) fixed by UP at Rs 1 65 for the common variety.
Consequently, the number of sugarcane farmers is also likely to swell by about 50,000 to 4.15 million to reap the benefits of better prices this year. However, the levels of cane prices may not be sustained during the next crushing season, since the retail prices of sugar have also softened from the highs of Rs 45 per kg earlier this year.
Meanwhile, the government will undertake the annual sugarcane survey from May 1 to ascertain the requirement of sugar mills and the total area under the cash crop.
The survey identifies and weeds out cane mafia from the system and subsequent crushing by mills. Later, the cane commissioner passes reservation order on its basis, which binds sugarcane area to a particular mill for crushing.
The cane mafia register themselves as farmers and during crushing season, buy crop from small farmers at cheaper rates and pass on the same to mills at the higher official rates.
Since, the cane requirements of 128 functional UP sugar mills is pegged at 80 million tonnes, the survey ensures these units get regular sugarcane supply during crushing season without any hitch.
At present, only two mills are crushing in UP and these are likely to close in the first week of May. Due to better cane recovery and drawal (cane diverted to mills for crushing), which increased from 40 to 55 per cent, the sugar production is likely to touch 5.16 million tonnes.
