UP sugar output touches 5.5 MT

Uttar Pradesh sugar output in the current 2013-14 cane crushing season has touched 5.53 million tonnes (MT).

During 2011-12 and 2012-13, the state sugar production had stood at 6.97 MT and 7.47 MT respectively. However, sugarcane arrears have reached a new high of Rs 7,875 crore with the private sector mills accounting for the lion’s share of the dues at Rs 7,350 crore.

The mounting arrears have become a major poll issue in the run up to the Lok Sabha election, especially in western UP region. The political parties and leaders have been attacking the incumbent Akhilesh Yadav government for failing to ensure timely payment of dues.

So far, the 119 operational mills had collectively crushed over 60 MT of cane. The recovery percentage has shown marked improvement to 9.30 per cent compared to 9.11 per cent last year.

Recovery refers to sugar produced per unit of cane crushed and higher percentage means higher output and consequently more profit margin to mills.

So far, UP mills had paid about Rs 5,863 crore to farmers against total dues of Rs 13,739 crore. The actual arrears are higher at Rs 15,450 crore. However, the state government had allowed the mills to pay Rs 20 a quintal of cane price by the end of crushing season. This has collectively reduced their net liability by Rs 1,711 crore so far to Rs 13,739 crore.

During 2013-14, the UP cane price stands at Rs 280 a quintal, wherein the millers have been allowed to pay in installments of Rs 260 and Rs 20.

Earlier, the Centre had announced Fair and Remunerative Price (RFP) for sugarcane for the next 2014-15 season raising it to Rs 220 a quintal from Rs 210 a quintal for 2013-14.