MEERUT: After wheat growers in the state suffered massive losses because of unseasonal rain, sugarcane farmers now stare at a massive crisis. A day after private sugar mills in UP announced they would not buy sugarcane or start the crushing process this year, officials estimate the quantum of loss could be in the range of Rs 21,000 crore. Over 1,400 lakh tonnes of sugarcane were produced this year. 

"Based on the current price of sugarcane, we can estimate that the value of this crop will be Rs 21,000 crore. Nearly 784 quintals of cane per hectare was produced this year. If sugar mills do not purchase cane from farmers, the quantum of loss faced by sugarcane farmers this year will be massive," said Rajeev Rai, former district sugarcane officer of Meerut. 

Rai said it won't be farmers alone who are hit by the decision of the mills. "Sugar mills drive the entire economy of the region. There are 118 mills in the state, 94 of which are private. Over 40 lakh farmers work as direct suppliers of sugarcane to mills in UP. They will have no place to sell this crop anymore. Thousands of local sugar suppliers, shop owners, transporters and even property owners are affected. A single sugar mill affects more than a lakh people. Considering that there are 118 sugar mills in the state and 94 of them won't crush cane this year, we can only imagine how devastating this year could be for farmers," he said.

Farmer outfits, too, reacted sharply to the news. "If mills go ahead with this decision, lakhs of farmers will be ruined. In western UP, sugarcane is the primary crop. All of these people will not have money to support themselves. This year has been bad as it is. So many wheat farmers were forced to take their lives after their crops were destroyed by the unseasonal rains. Even mango growers suffered heavy losses. Now, we have another crisis in the offing. It would be radical to demonize sugar mills. We understand that they are facing a tough time too. But they need to be more sympathetic towards farmers whose livelihoods depend on them. They can't shut down simply because they had to face losses this year. At the same time, the government should ensure that all the remaining sugar stock is sold so sugar mills can get back on their feet. Crushing season needs to start on time this year," said Vinod Jatoli, district president of the Bharatiya Kisan Union (BKU). Crushing of cane begins around November, and continues till April each year. 

President of Bhartiya Kisan Andolan (BKA) Kuldeep Tyagi echoed Jatoli's views. "The root of the problem can be traced to former Union minister for agriculture Sharad Pawar, who encouraged sugar import. We have been importing foreign sugar even when sugar produced in India is not being bought," he said. 

Secretary of Uttar Pradesh Sugar Mills Association (UPSMA) Deepak Guptara told TOI, "The industry is passing through its worst financial crisis this year. Sugar production this year is expected to be around 283 lakh tonnes, the second-highest ever. This year is particularly bad because this is the fifth continuous year of surplus production. At 103 lakh tonnes, the opening sugar stock for the year 2015-16 will be the highest ever. As a result, sugar prices have crashed. On the other hand, state advised price (SAP) for sugarcane has doubled since 2008-09. It is now at Rs 280 per quintal. Since we cannot afford it, it led to the highest amount of unpaid cane arrears ever. We are trying to keep options open for farmers but unless the price of sugarcane is brought down to Rs 180 per quintal, we are helpless." 

According to Rai, mills should be encouraged to diversify to increase their incomes. "There are nearly 70-80 different kinds of products to be made from sugarcane. These include ethanol, alcohol, sugar, jaggery, vinegar and several kinds of chemicals. If mills can be provided with technology to tap all uses of sugarcane, crises can be avoided in the future. For this to happen, policy decisions will need to be taken at the highest level."