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Sugar mills cry foul as farmers cut sweet deals

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  • Faced with shortage in sugarcane production and diversion of cane to gur (jaggery) and khandsari units, sugar mills in UP have advanced the cane-crushing schedule from December to October to be able to purchase their required stock before farmers sell off the harvest at higher prices.

    For the last three years, sugar mills, particularly the private units, have been commencing the cane-crushing season from late November and early December for better sugar recovery.

    The sugarcane production is set to decline during the current season 2009-10 as area under cane cultivation has reduced by 20 per cent.

    During the last crushing season, state cane department said, the area under sugarcane cultivation reduced by 7.10 lakh hectares — to 21.40 lakh hectares against 28.5 lakh hectares in 2007-08. In 2009-10, the acreage is estimated to go further down to 17.88 lakh hectares.

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    Against the sugarcane production of 1,608 lakh MT in 2007-08 and 1,107 lakh MT in 2008-09, production for 2009-10 is estimated to fall further to 900 lakh MT.

    An official of the cane department said a large number of sugar mills have communicated the cane-crushing schedule to the Cane Commission, saying they intend to commence it after October 15. “Member units of the UP Sugar Mills Association (UPSMA) have communicated the cane-crushing schedule to the government but there will be problem in keeping with the schedule due to the shortage of the sugarcane,” said KN Shukla, the secretary of the association.

    “For ensuring adequate supply of sugarcane to sugar mills, the UPSMA has also requested the government to put some restrictions on the gur and khandsari units during the current season to prevent these units from buying sugarcane from the farmers before January 15,” Shukla added.

    ... contd.

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