Modi struck a rapport with sugarcane farmers when he announced that a BJP government in the state, if elected, would clear their dues in 14 days. Speaking at an election rally in Meerut, a satellite city near Delhi and a politically influential centre in western Uttar Pradesh, Modi, during a rally last Saturday, alleged that the state government might have done deals with sugarcane mills because of which farmers have not been paid yet. He assured the cane farmers that if the BJP comes to power in the state, they will be reimbursed their dues within 14 days. "After the BJP comes to power (in UP), we will make sure that loans for small and marginal farmers are waived. Furthermore, we will also do everything needed to ensure the safety of women and generate more employment opportunities for youth in the state," the PM said. The remark led to a rally in sugar stocks on the bourses, with some stocks going up by over 8 per cent, the highest gain being 15.5 per cent (Rana Sugar). Under the Sugarcane Control Order, which empowers the states to make rules for the sugar sector, there is a provision that mills have to make payments within 14 days of buying cane from farmers. They are required to pay interest after 14 days. However, mills do not follow these rules during surplus years when sugar prices slump, leading to court cases. Uttar Pradesh, which has the highest number of private sugar mills in the country, has been facing the problem of cane arrears for a long time. Dues to farmers, adding up to thousands of crores of rupees, are withheld or delayed prompting the government to intervene with one package or the other. “My sugarcane farmer does the hard work. The sugar mill owners are fat, but my farmer has nothing to gain,” Modi said amid cheers from the crowd. He reminded that he had promised the sugarcane farmers that once “we form the government in Delhi, I will take the matter of dues in my hands and release Rs 22,000 crore”. This, he said, was fulfilled in 2016. “I want to ask the UP government what was the reason why sugarcane farmers were not paid their dues. We put 99 per cent of the money in the farmers' bank account,” he said. The government in November 2015 had announced a subsidy of Rs 1,147 crore to sugar mills by agreeing to pay the amount to sugarcane farmers on behalf of companies so that they were able to export 3.2 million tonnes of the sweetener. The production-linked subsidy of Rs 4.50 per quintal was paid directly to cane farmers during 2015-16 season (October-September) on behalf of the mills on the condition that they will export at least 80 per cent of their export quota. The centre has allotted mill-wise export quota that totals 4 million tonnes. The sugar mills adjusted the subsidy amount paid directly to farmers from their total dues as they purchase the cane at the rate fixed by the government. After the decline of sugar prices last year, which resulted in the food commodity becoming unviable, mills assistance from the government in order to pay cane arrears. As Modi has been focusing on the alliance of the SP and Congress as the main opposition to BJP, he spent much of his time criticising the performance of the Samajwadi Party government in the state and the UPA rule at the Centre. After his acronym ‘SCAM’ for the SP, Congress, Akhilesh and Mayawati on Saturday in Meerut, next day Modi coined another term -- VIKAS (vidyut, kanoon and sadak) to reach out the state’s population. “The first war of Independence began here in Meerut in 1857. Then the fight was against the British and now the war is to eradicate poverty,” Modi said adding youth were still being forced to look for employment in other states despite Uttar Pradesh having so much potential for development. Modi also announced BJP’s promise of waiving loans for small and marginal farmers. In western UP, there are comparatively lower number of marginal and small farmers who own less than 5 acres of land. So, the waiver may not benefit much. There are small farmers who either work as labourers or plough land on lease. “The ruling government in Uttar Pradesh is one that needs to be removed from power immediately because they are a government that collectively supports rogues and goons,” Mode said.