UP 'bitter' to sugar sector deregulation demand

The Uttar Pradesh government is opposed to the sugar sector deregulation apprehending arbitrary moves by sugar mills in the aftermath.

The government feels that under a decontrolled regime, mills could start encroaching upon the reserved cane area of other units and thus trigger resentment among growers.

Chief Minister Akhilesh Yadav aired his government’s views in his meeting yesterday with the high-powered sugar decontrol panel, headed by C Rangarajan, the chairman of Prime Minister’s Economic Advisory Council.

UP is India’s largest and second largest sugarcane and sugar producer respectively. During 2011-12 crushing season, the total sugarcane dues in UP stood at about Rs 18,200 crore, while total sugarcane economy, including the huge unorganised sector, could be pegged at almost Rs 30,000 crore.

The sector supports over 4 million farmers families in UP, while there are 125 mills, including about 100 in the private sector.

Rangarajan is seeking the views of all the 11 sugarcane growing states over the proposed deregulation of the sugar sector for ushering in efficiency, making the pricing mechanism more transparent and providing better farm income.

Specific points of reference for the panel while seeking opinions of stakeholders are sugar levy on mills; abolishing cane state advised price (SAP), which is at variance (and higher) with the central fair and remunerative price (FRP) etc.

The state feels small farmers would be exploited under a decontrolled sugar regime, while big mills would profit at the cost of smaller units.

Meanwhile, Rangaranjan also met a farmers’ delegation and sugar mills’ representatives.

The mills are against state advised price (SAP), which they claimed was not transparent and was being followed only by UP, Uttarakhand, Haryana and Punjab for political consideration.

Kisan Jagriti Manch president Sudhir Panwar has also opposed the deregulation of sugar sector in the larger interests of cane farmers.