UP growers seek Rs 160 a quintal for sugarcane

Chennai, Oct. 10 Sugarcane growers in Uttar Pradesh have asked the State Government to increase the State Advised Price (SAP) for their produce by at least 25 per cent to 160 a quintal. But the sugar mills have said they would not be able to pay more than Rs 112.

For the 2007-08 season that ended in September, the Uttar Pradesh Government had fixed SAP at Rs 125 a quintal. However, the Supreme Court, in an interim order last month, asked the sugar mills in the State to pay Rs 110 a quintal without deducting any payment for transportation pending a final verdict.

The growers placed their demands before a special committee set by the State Government and chaired by the Chief Secretary on Friday in Lucknow.

“All the sections concerned in the sugar industry, from farmers to sugar mills and other connected parties, took part in the meeting and aired their voices. We have heard their views. If necessary, we will hear the views of others related to the industry,” a State official said.

The meeting saw representatives of growers, the Uttar Pradesh Cooperative Cane Union Federation, Indian Sugar Mills Association and Uttar Pradesh Sugar Mills take part.

Sugar not relevant
Sources said the growers had demanded Rs 160 based on rising input costs. One of the growers’ representatives told the committee that the price of final product, sugar, was not relevant for growing sugarcane and only rise in the input costs for cultivating the crop should be taken into account.

“Return/margin of profit on the costs to the farmers or the investments made by them are relevant for fixing the price,” the growers’ representative said.

Pointing out that the Commission for Agricultural Costs and Production had never considered market price of sugar to recommend Statutory Minimum Price (SMP) for sugarcane, the representative said the commission had, in its supplementary report in March this year, recommended Rs 142 as SMP plus bonus. “The recommendations have persuasive value as it based on relevant considerations,” the committee was told.

The growers’ representative said scientific data provided by the Uttar Pradesh Council of Sugarcane Research , Shahjahanpur on the cost of sugarcane production was relevant for SAP as it had been recognised and upheld by the Supreme Court.

“Return for the growers from alternative crops and the general trend of prices of agricultural commodities is also required to be looked into while determining SAP,” the committee was told.

Gains from by-products
Another point that was raised before the committee was that if sugar prices were to be taken into consideration for fixing the price of sugarcane, then the earnings of the mills from the by-products of sugarcane should be taken into consideration.

References were also made to the report of the National Commission on Farmers submitted by renowned agricultural scientist, Dr M.S. Swaminathan. The report had recommended that minimum support prices of principal agricultural commodities be raised at least 50 per cent more than the weighted average cost of production.

The sugar mills, on the other hand, told the committee that their financial condition did not allow them to pay more than Rs 112 a quintal.

The committee will now prepare a report based on its findings and submissions made before it and submit it to the State Government.

The Uttar Pradesh Government’s response to the pulls and pressures of both sides will be watched with interest since the SAP, fixed since 2006-07, has been contested bitterly in the courts.

In fact, the SAP fixed for 2006-07 is still under dispute with the Supreme Court hearing it. The 2007-08 SAP has also been hotly contested and, in fact, saw two different rulings by the Allahabad High Court and its Lucknow bench. The issue was then referred to the Supreme Court, which then asked the mills to pay Rs 112 a quintal pending final disposal of the case.
source:hindu