Even 10 days aftre the Allahabad High Court?s direction to UP sugar mills over cane crushing, only 5-6 sugar mills in western region of the state actually have started the process. Rest of the mills are expected to start the process by the first week of December.
The situation of the sugar industry is far from turning sweet. While angry farmers have been olding demonstrations and setting fire to their standing crop in the fields, the mill owners, too, are in a piquant position.
According to industry sources, though the Allahabad High Court order has given them slight relief, it is not going to help the industry much as the paying capacity of the millers is below the statutory minimum price (SMP). It may be mentioned that the Allahabad High Court had directed the sugar mills to pay farmers at the rate of Rs 110 per quintal of their produce as against the support price of Rs 130 per quintal announced by the state .
Says a mill owner, ?At this price, banks are refusing to give us any loan to start crushing, let alone allow us to pay last year?s arrears of Rs 1,400. The cause of the poor farmers, which everyone is supposedly espousing, will be defeated if we are unable to procure cane at that price. When the farmers are selling off the crop at Rs 50-60 per quintal to gur and khadsari units, why not allow us to procure it at the statutory minimum price of Rs 85.70? That way, both the farmer as well as the millers will benefit.?
Sugar industry insiders feel that the move to set a higher procurement price in Uttar Pradesh is a political gimmick and has nothing to with the ground realities.
?Farmers in Maharashtra are selling their crop at Rs 80 per quintal. This price has been reached upon by both the farmers and the bankers who will give loans to the millers, after taking into consideration the sugar prices. In UP, it is a short-term view which will benefit neither the farmers, nor the industry. From day one, mills have started crushing with arrears and the farmer will remain unpaid?? states another mill owner.