Farmers,millers differ on SAP for sugarcane

ISMA maintained that the depressed market conditions had put severe constraints on the industry and they were not in a position to pay more than Rs 153 per quintal. The farmers,on the other hand,were adamant that they would not settle for less then Rs 300 per quintal. Last year,the state government had fixed the SAP at Rs 162,Rs 165 and Rs 170 per quintal for the unapproved,common and early varieties of the sugarcane,but the farmers actually got a much higher price,thanks to a shortage of cane.

Gupta,however,made it clear that the SAP cannot be less than the figure fixed last year. “All relevant issues were discussed in the meeting. There was no final decision yet,but the SAP for 2010-11 will be higher than the one fixed last year,” he said,adding that the decision would be taken in the next few days. A meeting of the state cabinet is scheduled for November 2 and an announcement may be made after the meeting.

ISMA representative Shyam Lal Gupta said the millers could pay a price between Rs 157 and Rs 167 as the prevailing sugar price is between Rs 2,300 and Rs 2,400 per quintal. In case the sugar price appreciates,they could pay Rs 8 per quintal extra for every hike of Rs 100 per quintal in sugar price. He said the industry had lost over Rs 3,000 crore in the last season as it had to procure sugarcane at a price of Rs 260 per quintal.

Terming the announcement of the SAP by the state government every year as “political expediency”,Gupta said there should be a scientific formula for the fixation of sugarcane price. Globally,the price of sugarcane is linked with the price of sugar in the market. Such a practice is in the interest of both,the farmers and the industry,said Shyam Lal.

The farmers,however,accused the industry of trying to pass the price of its inefficiency on to farmers. “The daily cane-crushing capacity of sugar industry in UP is 7.5 lakh metric tonne which is highest in India. The sugar industry in Maharashtra,with a daily crushing capacity of 6.3 lakh MT,is operating at 138 per cent capacity utilisation while in UP,it is as low as 50 per cent,” said Yogesh Dahiya,secretary of the Saharanpur Cane Cooperative Society. He said UP produced 48 per cent of the country’s sugarcane,while Maharashtra share was just 28 per cent. “And yet it produces more sugar than us,” he said.