Lucknow July 2: Ahead of the panchayat polls in Uttar Pradesh, private sugar mills in the state have refused to begin crushing if they have to shell out more than Rs 180 per quintal, spelling trouble for the Samajwadi Party government.
Reducing State Advised Price (SAP) from the existing Rs 280 per quintal is next to impossible for the government, which claims to be a pro-farmer party.
The Uttar Pradesh Sugar Mills Association (UPSMA) — an apex body of private sugar mills in the state — in a letter to the Union Ministry of Consumer Affairs, Food and Public Distribution has announced that it will not start cane crushing for 2015-16 at the prevailing SAP.
-The letter, also marked to state Chief Secretary Alok Ranjan, has demanded that difference between SAP of Rs 280 per quintal or Fair and Remunerative Price (FRP) of Rs 230 per quintal be borne by the government and paid directly to farmers as bonus, as it is not possible for the sugar mills to pay the amount. Currently, the SAP of sugarcane in UP is Rs 280 per quintal, which has been increased by nearly 100 per cent — from Rs 140 per quintal in 2008-09 to Rs 280 per quintal in 2014-15. The UPSMA has 93 from the total of 95 private sugar mills as its members in UP. These account for nearly 91 per cent of the total cane crushing in the state. The UPSMA, in its letter, has informed the Centre that even the FRP of Rs 230 per quintal is not feasible for them, as it can only pay between Rs 180 to Rs 220 per quintal to farmers. It added that since farmers have already grown sugarcane in their fields, the private mills can pay only Rs 180 per quintal, which is calculated at 75 per cent of the ex-mill sugar price in UP, while the remaining difference be shared between the central and state governments. The current average ex-mill sugar price in UP is Rs 2,350 per quintal. After the letter was sent on June 25, the state government held a meeting with UPSMA officials the very next day. “It has been categorically conveyed to them that no concession can be given to them anymore. They have to clear all pending cane arrears of farmers by July 15 as per the court order,” said Alok Ranjan. When contacted, UPSMA Company Secretary Deepak Guptara said: “If the government told us categorically about its decision, we also categorically conveyed that it is impossible for us to run our mills at SAP of Rs 280 per quintal.” He also claimed that private sugar mills have cleared all arrears to farmers. While the normal cane crushing season in UP begins from October, private mills start their crushing operation from November 15. In 2014-15, the state government had to apply coercive measures, like lodging FIRs and seizure of sugar stock in private mills to pay farmers.