At this time last year, as many as 178 sugar factories had started crushing cane for the 2012-13 season across the country. This time round, not even 50 have started operations as the stalemate over sugarcane pricing continues in major cane growing States of Maharashtra, Uttar Pradesh and Karnataka.
On Friday, farmers in Maharashtra and UP demanded a higher price for their produce, which the millers refused to accept.
price tussle
At the preliminary meeting convened by the UP Sugarcane Commissioner in Lucknow, farmers demanded a price of Rs 350 a quintal citing higher production costs. Representatives of millers, who participated in the meeting, expressed their inability to pay more than Rs 240, citing a bearish trend in sugar prices.
Millers also reiterated their demand that the cane price be linked to that of sugar price according to the recommendation of the Rangarajan Committee.
In the sugar heartland of Maharashtra, over 50,000 cane growers congregated at a rally organised by the Swabhimani Shetkari Sanghatan at Jeysingpur in Kolhapur district, demanding an advance instalment of Rs 3,000 a tonne, excluding harvesting and transportation costs.
Last year, cane growers in Maharashtra and parts of North Karnataka had received Rs 2,500 as first instalment, while during the final settlement they got an additional Rs 100-200 a quintal.
delayed operations
Though some 20-30 factories across Marathwada and central parts of the State have already started crushing, the farmers’ agitation for a higher price will delay the start of operations in southern Maharashtra, where a large number of mills are located, industry sources said.
In adjoining north Karnataka, farmers have already resorted to an agitation for the past three days, seeking a higher price.
The Karnataka Government, which has set up a separate board to decide cane price in line with the Rangarajan Committee recommendations, is finding it tough to arrive at a price as farmers want it to be linked to sugar recovery from cane.
next meet
Back in UP, the Chief Secretary has convened the next meeting of millers and growers on November 12, only after which the State Cabinet will declare the price.
“For the factories, it will take about 15-20 days after the State declares the price, to start crushing operations,” said Abinash Verma, Director-General of the Indian Sugar Mills Association.
This means that the crushing may actually start sometime in December, assuming the State Government takes a call sometime in mid-November.
Officially, the UP Government has estimated cane production cost of Rs 251 a quintal, said Sudhir Panwar of Kisan Jagriti Manch, a farmers’ body. “While farmers have been demanding Rs 350 a quintal, we believe that cane price should be around Rs 327,” Panwar said.