Win-win situation for U'khand farmers, sugar mills

More than two months after the sugarcane crushing season began on the face of violent protests, it is virtually a win-win situation for both farmers and sugar mills in Uttarakhand.

After the prolonged agitation, farmers are now getting the best price of Rs 270-275 a quintal. Besides protests, another reason for getting the desired price is owing to the shortage of sugarcane this season. The price of Rs 270-275 is said to be the highest in the country. The situation was no different in nearby areas of western Uttar Pradesh, officials here conceded. Except the government-controlled sugar mills, all the private ones are paying heavy bonuses to farmers.

In the first week of December, the government announced the state advised price (SAP) of Rs 192-197 at a time when farmers were agitating for a price of Rs 250. But soon the private mills began paying heavy bonuses to farmers due to acute shortfall, making it difficult for them to keep the factories running.

“If we run our factory at half its capacity, the losses will be higher. We have to pay an attractive price to farmers so that there is no shortfall of sugarcane,” said an official of the Uttam Sugar Mill at Haridwar district.

Meanwhile, farmers have also started building renewed pressure on the government to pay the sugarcane price at par with the private mill owners. During the past few days, farmers in Dehra Dun district forced the closure of Doiwala sugar mill in this regard. “We are considering the demand of farmers. We are ready to pay around Rs 250,” a top government official said.

On the other hand, sugar mills are expecting its retail price to hover around Rs 40-50 per kg. “So long as we are getting sugar price at Rs 4,000-4,500 per quintal, we will make profit,” said another mill official. Most of the mills are expecting the sugar price to be at the Rs 4,000-4,500 level for some more time.

The district officials also told Business Standard that farmers in Uttarakhand were rejoicing. “Our farmers are very happy now,” said sugarcane district development inspector Sheeshu Pal Singh after touring areas of Haridwar and Dehra Dun.

Uttarakhand is expecting a shortfall of sugarcane since cane acreage had come down to 93,000 hectares from the last year’s 99,000 hectares.