UP sugarcane output to be record high in 2010-11

Farmers’ payment to breach the Rs 15,000-crore mark.

On the back of an estimated 20 per cent increase in Uttar Pradesh sugar production in the ongoing crushing season, the payment to sugarcane farmers is inching towards a record level.

The farmers’ payment in the current season is on course to breaching the Rs 15,000 crore mark, much higher compared to the existing highest level of Rs 13,200 crore recorded during 2009-10.

Not only sugar production is pegged higher in 2010-11 crushing season, the State Advised Price (SAP) of cane is Rs 40 higher at Rs 205-210 per quintal compared to last year.

So far, mills have already paid Rs 9,837 crore to the farmers against the total dues of Rs 12,183 crore. The farmers have to be paid within 14 days of the delivery of cane lest interest is paid by mills on outstanding amount.

During 2008-09, about Rs 5,900 crore were paid to the state farmers. Even during 2006-07 season, when Uttar Pradesh had posted a record sugar production figure of about 8.5 million tonnes (MT), the total payment had stood at Rs 4,000 crore. The figures are actual payments made and not inflation adjusted.

While, the sugarcane department has estimated sugar production at 6.14 MT this year, industry has pegged it at 6.5 MT. Last year, the state sugar production stood at 5.18 MT.

The sugar mills are still crushing and the process is likely to continue till mid-April, especially in western and central parts of Uttar Pradesh.

The cane supply this year is robust and not much diversion to jaggery and khandsari units have been reported. Last year, the crushing had ended around March 15 due to lower cane availability.

Meanwhile, the government has warned mills of strict action if they defaulted in farmers’ payment within stipulated timeframe.

According to sugar department, till date the mills had crushed 55.41 MT of cane producing 5.01 MT of the sweetener. This season, the state’s cane acreage and production have been estimated at over 2 million hectares and 120 MT, respectively.

There are 4 million cane farmers in Uttar Pradesh, which is the highest sugarcane yielding state in India and second largest sugar producer after Maharashtra. The annual sugar consumption in the state is 5 MT.