UP sugarcane farmers lean on data, demand better support price

LUCKNOW: Sugarcane cultivators in Uttar Pradesh have upped the ante, demanding the State Advised Price (SAP) of their produce be fixed at Rs 327 per quintal.

Farming leaders said that they have informed Chief Minister Akhilesh Yadav their demands, backed by scientific and agricultural data.

Kisan Jagriti Manch President Sudhir Panwar said that the UP Cane Research Institute at Shahjahanpur had recommended cane price of Rs 228 per quintal during the previous season of 2012-13.

"Based on this recommendation and an increase of input cost by about 20% this year considering the steep rise in diesel and labour costs, the cane price for the upcoming season comes to Rs 273 per quintal. If we provide a reasonable profit margin of 20% to the farmers on this price, the SAP comes to Rs 327 per quintal. We therefore demand that the government announce an SAP of Rs 327 per quintal," said Panwar.

On the other hand, sugar millers have already written to the government that they are not in a position to pay more than Rs 240 per quintal in view of mounting losses and banks refusing to provide working capital to UP millers. Millers have asked the government to provide a bailout to the industry by paying a subsidy to bridge the gap between what millers can pay and what the farmers demand.

"Millers are pressurising the government that they will not run mills if the cane SAP is not reduced or a subsidy announced. Farmers are also geared up for an agitation in case the SAP is not increased," said Panwar.

Professor Yashvir Tyagi, former head of the Economics Department in Lucknow University, said that millers have got some concessions this year, which will enable them to earn more profits and hence should be able to pay an increased SAP.