Uttar Pradesh sugar millers could pay growers Rs 180-200/quintal

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Lucknow: Agriculture minister Sharad Pawar, on Tuesday, is believed to have brokered a truce between the warring sugar millers and farmers in Uttar Pradesh, the country’s largest sugar producer.

Sources said Uttar Pradesh sugar millers might agree to pay farmers in the region of Rs 180-200 per quintal for the cane purchased this season. Emerging from the meeting, Pawar said he has appealed to the millers to resolve the issue soon.

“We are trying to see that crushing operations start in UP as early as possible,” he said, adding that mills in other states like Tamil Nadu, Karnataka, Maharashtra and Gujarat have already started crushing.

Meanwhile, sources said that while the UP sugar industry could pay a higher price than the state advised price (SAP) declared by the UP Government, the exact amount of incentive is expected to be worked out at a meeting of the UP millers with the state government on Wednesday. If all goes well, majority of mills in the state could start crushing from middle of November, sources added.

The deadlock arose after sugarcane farmers of Uttar Pradesh not only rejected the Centre’s fair and remunerative price (FRP) of Rs 130 per quintal, but were also unwilling to accept the state government’s state advised price (SAP).

In order to strike a consensus, the state government has asked the district administrations of the cane producing districts to facilitate a mutually agreed price between the farmers and the millers.

“We are ready to pay incentives over and above the SAP but that has to be practical. Rs 280/quintal is simply not sustainable on us,” said a miller, requesting anonymity.

Not a single farmer turned up at Ramala cooperative mill in Baghpat and Sneh Road cooperative in Bijnore to provide cane despite both factories being ready for crushing.

A further delay in crushing will aggravate sugar shortage in India , which is the world’s top consumer and second-biggest producer after Brazil.

Simbhaoli to start crushing from Wednesday

Breaking the deadlock between sugar millers and cane growers in Uttar Pradesh, Simbhaoli Sugar Mills Ltd, one of the biggest sugar producers has pledged to start cane crushing from Wednesday.

This welcome move comes amid tough posturing by the cane crushers and farmers on the contentious issue of cane prices.

Sources said the starting of operations in Simbhaoli could set off a chain reaction among other millers.