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HomeSugar Industry NewsUttar Pradesh govt owes sugarcane farmers in the state Rs 3,752 crore...

Uttar Pradesh govt owes sugarcane farmers in the state Rs 3,752 crore for 2020-21

In February 2021, Uttar Pradesh cabinet had decided to maintain the state advised price (SAP) of sugarcane at Rs 315 per quintal for the common variety, which accounts for more than half of the total sugarcane produce. The price was the same the year before too. In Uttar Pradesh, private and cooperative mills buy cane from farmers at prices fixed by the government and both have been unable to pay their dues on time.

The farmers in Uttar Pradesh are disgruntled with the state government because the SAP has not been increased for four years. In September 2021, eyeing elections, the Ajay Bisht government raised the support price of sugarcane by Rs 25 per quintal. The sugarcane price is now Rs 340 per quintal for common varieties and Rs 350 for early varieties.

The Bharatiya Kisan Union (BKU) has demanded the Yogi government fix the sugarcane price at Rs 425 a quintal. BJP’s Pilibhit MP Varun Gandhi had also asked the state government to increase the price to Rs 400 per quintal.

In August 2021, the Supreme Court sought responses from the union government and 11 states on a Public Interest Litigation filed by agriculturists on behalf of farmers who are awaiting nearly Rs 20,000 crore from sugar mills.

Notices had been issued to Uttar Pradesh, Maharashtra, Punjab, Uttarakhand, Haryana, Gujarat, Bihar, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and four major sugar mills/associations – Bajaj Hindustan Sugar Ltd, cane Agro Energy (India) Ltd, Indian Sugar Mills Association and Indian Sucrose Ltd. The case is still pending in the Supreme Court.

What other states owe their sugarcane farmers?

Maharashtra government which had to pay Rs 32,145 crore to sugarcane farmers, have released Rs 31,751 crore; only Rs 394 crore remains to be disbursed. This is followed by Chhattisgarh, which has to pay Rs 64 crore, Haryana with Rs 63 crore, Uttarakhand Rs 52 core, Gujarat Rs 44 crore, Andhra Pradesh Rs 37 crore, Tamil Nadu Rs 25 crore, Punjab Rs 9 crore and Bihar owes its sugarcane farmers Rs 4 crore.

The above news was originally posted on www.nationalheraldindia.com

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