http://timesofindia.indiatimes.com/city/lucknow/With-an-eye-on-polls-Mayawati-raises-cane-price/articleshow/10661931.cms
With an eye on polls, Mayawati raises cane price
TNN | Nov 9, 2011, 05.20AM IST
LUCKNOW: With an eye on upcoming state elections, UP chief minister
Mayawati on Tuesday announced Rs 235-250 per quintal state advisory
price for different varieties of sugarcane for the season 2011-12. The
average increase as compared to the previous season is Rs 40 . The
move is being viewed as an attempt to woo a large farming community in
the state.
Talking to media persons immediately after taking the decision at a
cabinet meeting, the chief minister said that the price announced by
her was more than Rs 230 per quintal announced by the Punjab
government and Rs 145 per quintal fair and remunerative (FRP) for
sugarcane announced by the by Central government.
The decision, she added, would benefit over 40 lakh cane farmer
families in the state. She said that some sugar mills in the western
UP had started crushing cane and remaining would start in next three
days. She has also issued directions to officers to take strict action
against mills which refuse to buy cane at SAP and if there are
complaints about under weighing of cane by mills. Last year, Mayawati
said, two mill owners were arrested for laxity in crushing and delay
in payments to farmers and the government would not hesitate to do so
again.
The CM said the new price has been revised as: Rs 240 per quintal for
common variety as against Rs 205 per quintal last year. For the early
maturing variety, the SAP goes up from Rs 210 per quintal to Rs
250/per quintal and Rs 235 for late maturing variety.
With this, the total payment by mills to cane farmers for their
produce is expected to go up to around Rs 15,000 crore this year as
compared to that of Rs 13,000 last year. Likewise, UP is also
confident of increasing its sugar production this year to 62 lakh
tonnes as compared to 58.7 lakh tones last year.
"We have done to the best of our ability protect the farmers' interest
and the prices fixed are both in the interest of the cane growers and
sugar cane industry," the CM said. Taking credit for her government to
double the cane prices during her rule since 2007, she said that
during the Mulayam Singh Yadav's regime the cane price was Rs
125/quintal. "But we have almost doubled SAP to Rs 250/quintal, as we
work for the benefit of farmers."
Farmers had demanded the state advisory price of cane at Rs 275 to Rs
290/per quintal in view of the rising cost of agricultural inputs,
including fertilizers and other raw materials. But this was opposed by
sugar mill owners, who said that sugar production would become
unprofitable and the Industry would become sick if the SAP was
increased under farmers' pressure.
This posed a dilemma before the state government and delayed its
decision to announce the SAP, even though the sugar crushing season
had started and farmers were getting desperate to sell their produce.
They were desperate as they needed their field vacant in time to catch
up with the rabi sowing season.
Reacting to the increase, director general of the Indian Sugar Mills
Association Abinash Verma said the production cost of sugar would go
up by the revised price and this would cause loss to the mills. The
only way out, he said, was export. That could help mills compensate
for the escalating prices to be paid to farmers.
The nervousness among the mill owners is evident. Even though the cane
crushing season has started, mill operation remains at a snail's pace.
Only 24 out of the 120 odd sugar mills in the state have so far
started crushing.
Kisan Jagriti Manch president Sudhir Panwar said "Even after this
hike, farmers will be in loss. As per UP Council of Sugar Cane
Research, Shanjahanpur, the input cost increased this year by 34.5%
(last year it was Rs 139/quintal while this year Rs 187/quintal) while
increase in SAP is only 17% (last year it was 205 for normal variety
while this year it is Rs 240). "
Bhartiya Kisan Union (BKU) general secretary Rakesh Tikait, said, now
government should ensure that mills start crushing cane as early as
possible. He blamed Central government for low SAP. "The Congress led
UPA government announced FRP Rs 145 per quintal. Mill owners are
arguing that since price (FRP) announced by Centre is 'fair and
remunerative', there is no need for the state government to fix SAP.
The mill owners may also challenge state government's decision in the
court," he said.
Farmer leader associated with Congress party, VM Singh: "The state
advisory price of Rs 235-250 per quintal by UP government is very low.
Last year farmers got up to Rs 260 per quintal.
In one year, the input cost of farmers has increased by 60% due to
increase in cost of labour, diesel and fertilisers."
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