Bajaj Hindusthan CMD Shishir Bajaj sanguine about UP sugar sector

UP sugar sector currently burdened with cane arrears of over Rs 2,400 crore for 2012-13 season

India’s top sugar producer Bajaj Hindusthan CMD Shishir Bajaj has expressed confidence that the crisis in the Uttar Pradesh sugar sector would diffuse well before the next crushing season.

The state sugar sector is currently burdened with cane arrears of over Rs 2,400 crore for the 2012-13 season and uncertainty about the cane price to be paid for the coming season.

“Things would ultimately turn out to be fine,” Bajaj retorted with a reassuring smile to a Business Standard query about the crisis facing the state sugar industry.

He maintained things would eventually pan out to the satisfaction of all the sugar sector stakeholders, including farmers and industry. Bajaj Hindusthan has 16 sugar factories and 6 distilleries in UP.

The UP mills have already expressed their inability to clear arrears and urged the government for a bailout in the form of soft loan and subsidising them towards any cane price beyond Rs 240/quintal.

Last year, the cane price was fixed at Rs 280/quintal and there are apprehensions of further increase in the price in the election year to keep the growers in good humour.

Bajaj was in town yesterday to receive Lifetime Achievement Award at the 72nd Annual Convention of the Sugar Technologists’ Association of India (STAI).

Earlier in his address, state agriculture minister Anand Singh conceded that the sugar mills were sick, but asserted the cane farmers were also not getting their due.

He alleged rampant under-weighing at the sugar factories to the tune of 15-20%, which ultimately resulted in losses to farmers.

Singh was critical of the sidelining of sugarcane societies in cane procurement process in the state. The sugar mills are bypassing cane unions and preferred direct cane purchase, which led to harassment and exploitation of farmers, he claimed.

“Help the farmers to your best and the farmers would help and support you in return,” he told sugar companies.

STAI president Dr G S C Rao said genetically modified cane varieties were being developed in India and sugar factories were slowly getting transformed to sugar complexes.

He suggested technical bodies be involved in sugar policy making for the overall benefit of the sector.

There are 125 operational sugar mills in UP. Sugar is the largest organised agro-based industry in UP supporting 4 million farmers’ families. Other industries viz. molasses, bagasse, power (cogeneration) etc are supported by sugarcane, whose annual economy is estimated at Rs 30,000 crore.