Sugarcane farmers in Uttar Pradesh as well as the mills are facing trouble due to the inordinate delay in the announcement of the state advised price (SAP) for cane for the ensuing season.
While 110-odd mills in the state have already produced 128.52 lakh quintals of sugar, they haven’t yet sold even a kg of the sweetener. Neither have they made any payment to farmers against 1,294 lakh quintals of cane that has been crushed.
Ideally, SAP should be declared by the state government in November. But this year the Akhilesh Yadav government has not yet decided SAP for cane, making the farmers restless.
While fresh stock is being added every day, the mills are not able to sell sugar as there is no clarity regarding the entry and purchase tax that will be applicable on it. Every year, the state government announces the entry and purchase tax at the time of announcing the SAP.
The farmers are waiting for the announcement desperately. “While we have sold our stock to the mills, we have not received a penny against it as no one knows how much is to be paid. We have been putting off our expenses every day, but it is becoming very difficult. We are forced to take loans from local money lenders,” said Pritam Singh, a farmer from Pilibhit.
According to insiders in the cane department, the SAP was supposed to be approved by the state Cabinet last week but despite all preparations, it was put off at the last minute. “It is believed that the announcement has been put off due to differing opinion on price,” said a source.
“The government will soon declare the cane price,” said cane commissioner Ajay Kumar Singh, but refused to specify exact date.
Going by insider information, the issue will now be taken up by the Cabinet in its next meeting, which should be in the new year as the entire state machinery is busy with the Saifai Mahotsav from December 26-January 5.
“The delay is costing both the farmers and the industry dearly. The wholesalers and stockists are refusing to lift fresh stock of sugar from mills in the absence of clarity and the situation is now threatening. It is leading to large-scale hoarding of sugar, thereby shooting up its prices in UP,” said an official of the Uttar Pradesh Sugar Association.
As of last year’s SAP, mills were paying R240/quintal while the state government was charging 2% entry tax on sugar and a purchase tax of R2 per Kg (charged on cane and recovered on sale of sugar).
According to sources, the reason why the state seems to be dragging its feet on the much awaited SAP is that it is yet to make up its mind as to what would be the “best price”.