UP sugar output exceeds 6 million tonnes

Cane farmers’ payments in the state may touch Rs 17,000 crore

On the back of higher cane production and acreage in Uttar Pradesh, the sugar output has already exceeded 6.1 million tonnes (mt), higher than the total 5.9-mt mark for entire 2010-11 season.

While, the state government is confident of achieving its target of 6.5 mt sugar production, experts believe it could even touch 7 mt.

“This year saw less diversion to gur and khandsari units,” according to farmers advocacy group Kisan Jagriti Manch. “Consequently, the mills have received good cane supply. We feel, the crushing season can even extend to April 25 and total sugar output can touch 7 MT in UP,” Manch president Sudhir Panwar of Lucknow University said.

In the current season, the total sugarcane payments to farmers are likely to touch Rs 17,000 crore.

However, the sugar arrears have mounted to over Rs 3,160 crore as per the latest available figures. Of the total cane dues of Rs 13,131 crore and Rs 1,231 crore on private and cooperative sugar mills, they had only paid Rs 10,409 crore and Rs 786 crore respectively.

On Friday, the cane commissioner had directed the defaulting private sugar millers, whose payment percentage had dipped below 80 per cent, for early settlement lest the government resorted to issuing recovery certificates.

There are 125 functional mills in the state, mostly in private sector. Meanwhile, the mills had collectively crushed about 69 mt of cane with the recovery percentage standing at 8.96.

However, Panwar expressed concern over arrears. “The new government in UP has a challenge in the form of cane arrears, since farming community is a political constituency of the ruling Samajwadi Party.” On November 8, 2011, UP had hiked the state-advised price for came by almost 20 per cent.

The price of early variety of cane was increased Rs 40/quintal to Rs 250/quintal, while that of common variety was hiked by Rs 35/quintal to Rs 240/quintal.