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| Pawar may resolve UP cane price rift today |
| Dilip Kumar Jha / Mumbai Nov 10, 2009, 00:23 IST |
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 The rift between sugar mills and farmers in Uttar Pradesh (UP) over cane prices is likely to be resolved on Tuesday with the intervention of the Union Agriculture Minister Sharad Pawar.
Amid farmers’ intensified agitations, including ‘bandhs’ and ‘dharna’ in the state, and political parties getting involved, Pawar convened a meeting of UP sugar mills to work out a formula to satisfy both mills and farmers. UP farmers have been demanding Rs 280 a quintal as against the fair and remunerative price (FRP) of Rs 129.84 a quintal announced by the government.
The development assumes significance as the country is facing a huge supply shortage of the sweetener due to low production last year. India’s sugar production was recorded at 14.7 million tonnes (MT) in comparison with 23 MT of consumption. With a carry over stock of 9.5 MT and imports of about 5 MT, the supply shortage was eased.
But, prices are escalating everyday hitting a record high of Rs 40 a kg on Monday in Vashi retail market. Pawar had earlier urged mills to commence crushing for the new season early to ease the shortage. Instead, the crushing is being delayed as farmers are unwilling to supply cane at FRP. About 140 registered mills in UP are awaiting concrete decision on cane pricing to avoid any overheads in future.
“We are meeting the agriculture minister tomorrow to discuss the cane pricing in Uttar Pradesh. Since the delay in crushing of mature cane will result in loss of sucrose content and thereby, loss of recovery at a time when the country requires higher output. Hence, an acceptable price will be decided tomorrow,” said an invitee.
Early harvesting of matured cane will allow farmers to prepare field for wheat sowing which is likely to start by the end of December.
The industry can comfortably pay the state advised price of Rs 165 a quintal as announced by the state government. Any further rise in cane prices will affect mills inversely, he added.
On Monday, Mulayam Singh Yadav, the ex-chief minister of the state, joined farmers’ move and called both — the state and the Centre — governments as farmer-unfriendly.
Maharashtra, the second-largest sugar producer, has not been affected by the so called unsatisfactory FRP as mills in the state have already paid advance much higher. According to Prakash Naiknavare, managing director of Maharashtra State Federation of Co-operative Sugar Factories (Sugar Federation), farmers have received Rs 1,850 a tonne over Statutory Minimum Price (SMP) as an advance against the last year’s payment of Rs 800 a tonne over SMP of Rs 107.76 a quintal.
Out of the 140 registered mills in Maharashtra, 43 mills mainly corporations have already commenced crushing for the season.
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