LUCKNOW: With the state government leaving the state advisory price (
SAP) for sugarcane unchanged for the third consecutive year, the spotlight is set to move to
cane politics which determines the fortunes of
political parties, especially in the west UP region.
The decision to keep the SAP — the cane price millers are supposed to pay to
farmers — unchanged for various varieties of sugarcane was taken by the state cabinet by circulation late on Sunday evening. The compensation for ordinary and advanced variety would continue to be Rs 315 and Rs 325 per quintal. An increase in SAP by Rs 10 per quintal was done in 2018, a year after the
BJP came to power in UP.
The development comes even as the ruling BJP gears up for the much awaited
panchayat elections which are being touted as the semi-final before the high stake
Assembly elections due next year. Top officials in the cane development department said that the decision to keep the SAP unchanged was taken in view of the steep plunge in demand for
sugar in the wake of the novel
coronavirus pandemic.
“The sale of sugar has been sluggish in the open market because of the novel coronavirus pandemic. This led to a sharp dip in prices of sugar in the last few months. Secondly, the state government’s focus is on payment to farmers and not letting the cane dues pile up,” a senior official told TOI. The cane dues in the current season have already risen to Rs 20,000 crore.
The official said that the state government has already purchased cane worth Rs 35,800 crore in the ongoing season. “This is almost double of what has been before 2017 when the new government came to power,” the official said, adding that the state government seeks to strengthen the existing structure while ensuring that the farmers get benefited regularly.
The development, experts said, could further fuel the farmers’ unrest, especially in the west UP region which has turned into one of the key centres of the ongoing farmers’ stir against the new farm laws. Convener of Rashtriya Kisan Mazdoor Sanghatan VM Singh said that he has already moved a petition in the Allahabad high court against the state government over nonannouncement of SAP on timely basis and not paying interest on delayed payment done by millers. The petition is scheduled to be taken up by the court on Wednesday.
Industry experts said that the sugar recovery has been low in the ongoing crushing season with the result that the cost of sugar production stands significantly increased.
Millers said that the overall season could end with 0.5% lower recovery as compared to the last year season. According to UP sugar mills association, sugar has been selling at less than Rs 31.5 per kg making a further dent in the paying capability of the sugar mills.