Up Govt Storms Sp Bastion With New Cane Bonding Policy

The new sugercane bonding policy announced by the Uttar Pradesh state government is sweet music to the ears of sugar manufacturers, but a bitter pill for cane cooperative societies and middlemen. In the process, the Bahujan Samaj Party-Bharatiya Janata Party combine has struck directly at bete noir Mulayam Singh Yadav's Samajwadi Party (SP), which controls most of the cane cooperatives.

The new policy, which is applicable for the next three years, has clear political overtones. Since the Samajwadi Party has used its hold over the cooperatives to extend its influence in the state's western region, the government is now obviously seeking to kill two birds with one stone.

The policy fixes quotas for each sugercane farmer on the basis of the supply for the two years preceding 1995-96.

The area sown under sugar cane will be investigated on the basis of revenue records, so that powerful middlemen many not be able to show fake claims and obtain slips, which are essential for the mills to buy cane from the farmer.

The quota of each farmer will not exceed 85 per cent of his cane production or 3,500 quintals, which can go up to 500 quintals in case of excess production. Mills with deficient cane in their gate area will have the facility to increase the quota of each farmer.

The mills will have to buy the quota which has been allotted to each farmer in their gate area, while the farmers in turn will have to supply up to 85 per cent of their allotment. Thus, all the farmers will know how much cane they will have to supply in advance, while the industry will know how much cane they will have to crush.

The sugar industry will thus be released from the grip of the cane mafia, which earlier used to extort money in return for timely delivery of adequate quantities of sugercane. The policy has also taken steps aimed at ultimately doing away with the cane cooperatives.

Suger unit owners are understandably jubilant. Says Dhampur Sugar Mills owner Murli Manohar: