MEERUT: As sugar mill owners in the state wait for the state government to announce the state advised price (SAP) for sugarcane for the year 2015-16, Uttar Pradesh Sugar Mills Association (UPSMA) have proposed that the price for the next year should either be based on their capacity to pay farmers or the UP government should start a "revenue-sharing" system between sugar mills and farmers. 

Speaking to TOI, UPSMA secretary Deepak Guptara said, "We understand that farmers want sugar mills to start but so do we. We are waiting for the state government to announce the SAP for the year 2015-16 so we can start purchasing cane. Currently, the SAP is at Rs 280 per quintal in UP while the fair and remunerative price (FRP) is Rs 230 quintal. Our only expectation is that the SAP be set according to our current paying capacity. Since our industry has been in a state of crisis for the last few years, our paying capacity is around Rs 190 per quintal. Either the price should be linked to our paying capacity or they can start a revenue-sharing model between farmers and mills." 

Explain the model, Guptara said, "The model will be linked to the price of sugar in the market. We are hoping that prices will improve this year and we will be able to come out of this crisis. For the last few years, prices have been in free fall. If we make more profits, even farmers will stand to gain from the model. Mill owners will not mind paying more to farmers later in the year if prices of sugar go up. The revenue will, in a way, be shared by both stakeholders. Our representatives had a meeting with the state government last week and we gave them this proposal." 

Union minister of state (MoS) for agriculture Sanjeev Balyan last week had told TOI that the government plans to boost import of sugar to about 4 million tons to deal with the surplus stock of 11 million tons. The rise in exports, the minister had said, would likely bring the prices of sugar up.

When asked about payment of sugarcane arrears, Guptara said, "The situation has improved and a large amount of dues have been paid to farmers. Mills in UP have cleared about 85-86% of their dues."