Adityanath govt hopes to harness sugar mills for food processing in UP

In the first week of January, tonnes of potatoes were dumped in front of the Vidhana Sabha  here by angry farmers, after a price crash following a bumper crop of about 15 million tonnes (mt) last year.

While agricultural and horticultural production has been rising in Uttar Pradesh, the supply bottlenecks, lack of cold chains and a non-existent food processing industry has meant low returns to many and massive farm wastage.

Now, the Yogi Adityanath government wants to harness the idle capacity of sugar mills during the off-season, for food processing. The state's sugar mills are idle for six to seven months a year, after cane crushing gets over. The majority of these are centrally situated, with vast factory premises. Hence, potential for turning into integrated sugar and food processing complexes.

Keshav Prasad Maurya, deputy chief minister and with the food processing portfolio, has constituted a committee to prepare a plan in this regard. It could provide a cushion to sugar companies in the wake of falling prices and monetise their assets during the off-season. And, boost the food processing sector, workig to the official aim of doubling farm incomes by 2022.

At the UP Investors Summit this year, the government registered 637 private investment proposals worth Rs 245 billion in the food processing sector. It says 47 entrepreneurs have completed the preliminary ground work. Last year, the government had announced a policy for food processing, to promote the sector, with incentives. 

UP State Sugar Mills Association secretary Deepak Guptara told Business Standard their industry would support any proposal that benefited farmers and strengthened the commercial viability of mills. More so in the current phase of falling sugar prices and glut in the market. He says the government, though, is yet to discuss the issue with the sugar industry.

UP cane commissioner Sanjay Bhoosreddy says he hopes the new idea would fortify the economics of sugar mills.

Anil Kumar Shukla, vice-president, North India Sugarcane and Sugar Technologists’ Association, says a proposal to integrate food processing units in sugar mills would be a boon for UP farmers, unable to benefit from their bumper crops. Nor would the establishment of food processing plants require large investment; it would, however, generate much local employment.

Maurya has also directed officials to expedite mega food park projects allotted by the Centre. The chief minister has already spoken in public on how farmer suicides could be prevented to a large extent simply by boosting the food processing sector.

During 2017-18, the state is expecting another season of bumper potato crop at 16 mt (from 615,000 hectares). Potato output during 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16 had crossed 12 mt, 13 mt, 12 mt, 13 mt and 14 mt, respectively.

The previous Akhilesh Yadav government had proposed a potato- based vodka making unit in Kannuaj (parliamentary constituency of the then CM's wife). However, the plan did not proceed.

Quick facts 

• Uttar Pradesh has 119 sugar mills with combined installed capacity of 765,000 tonnes of cane crushed per day 
• It is India’s largest producer of sugarcane, sugar, potato, mil, wheat
• It is India’s largest food grain producer accounting for 18% share
• In 2016-17, UP produced 44 million tonnes of food grain
• It is second-largest producer of rice, vegetable crops