Sugarcane pay to UP farmers tops estimates, but dues remain

Main factor behind higher payments is the rise of 17% in the state price, which is Rs 280/quintal for common variety vis-à-vis Rs 240/quintal on the previous year

As the 2012-13 sugarcane crushing season rounds off in Uttar Pradesh, the total dues to farmers have exceeded the state government estimates set last year.

Against the Rs 21,500 crore pegged for the current season, the dues have breached Rs 22,402 crore, about 4.2 per cent higher. With four-five mills still crushing and expected to continue for a week, the total payments could only rise.

The main factor behind higher payments is the rise of 17 per cent in the state price, known as State Advised Price (SAP), which is Rs 280/quintal for common variety vis-à-vis Rs 240/quintal on the previous year.

The prices for early and rejected/unsuitable varieties of cane had been hiked to Rs 290/quintal and Rs 275/quintal compared to Rs 250/quintal and Rs 235/quintal respectively on December 7, 2012.

During 2011-12, the total payments were Rs 18,200 crore in UP.

However, the farmers are yet to be paid in full. So far, the 124 mills in UP have paid growers Rs 15,604 crore, leaving Rs 6,800 crore in dues.

Last month, a public interest litigation (PIL) had been filed to the Lucknow bench of the Allahabad High Court by V M Singh of Rashtriya Kisan Mazdoor Sangathan over cane dues. Next hearing will be on May 16.

The petitioner had prayed for immediate settlement of dues, 15 per cent interest payment over delay and relief to farmers on their agricultural loans until their dues were paid by mills.

UP Sugar Mills Association has been urging the state to provide relief with regards to the mounting arrears. However, the Akhilesh government is yet to take any decision even as the millers remain sanguine.

Meanwhile, the sugarcane department had sought cane arrear payment schedules from the mills to which some had already responded, an official source told Business Standard.

Earlier, recovery certificate had been issued against a mill in Aligarh.

"The court had ordered for day to day payment to the unit, which it failed to comply with, as such the RC was issued," he informed.

Meanwhile, sugar mills in UP had produced about 7.46 million tonnes (MT) of sugar after crushing over 81.16 MT of sugarcane with recovery percentage standing at 9.19 per cent.