Higher SAP could revive declining cane production

LUCKNOW: The decline in sugarcane production in UP in the past three years has been a matter of concern for all and sundry but the situation can
be revived by giving better incentive to farmers. This can be understood from the fact that while all the factors related to cane cultivation have been on decline, there has been a slight increase in the `fresh plantation' this year.

Hence, if state government accepts farmers' demand of Rs 200-215 per quintal State Advisory Price (SAP) for cane, it can motivate tillers to continue with cane farming.

Sample this: In 2007-08, farmers got Rs 110 per quintal for produce against input cost of Rs 114. The cultivation area dropped in the subsequent year. In 2007-08, the cane cultivated area was 12.31 lakh hectare in Plant variety and 16.19 lakh hectare in Ratoon. In 2008-09, Plant was sown in 7.70 lakh hectare and Ratoon in 13.50 lakh hectare -- a drop in both the categories. But in 2008-09, farmers got Rs 140 SAP. As there was a shortage, mills paid more for procurement. This motivated farmers to sow cane, hence cultivation of Plant category increased to 8.75 lakh hectare, whereas Ratoon dropped to 9.13 lakh hectare.

"This shows that if paid adequate compensation, farmers will sow cane in the next season as well," said Prof Sudhir Kumar, president, Kisan Jagriti Manch, a body of professionals and farmers formed after taking inspiration from TOI's Lead India campaign. The manch in its memorandum to the cane commissioner has also demanded Rs 215 per quintal SAP because input cost of the farmer, when calculated on the basis of state government parameters, comes to be Rs 176.90 per quintal. The same cost is Rs 233 per quintal, if risk factors suggested by the commission for Agriculture Costs and Prices are also included in the input.

Agriculture experts point out that a reasonable SAP (Rs 200-215 per quintal) will act as an incentive for farmers to continue cane cultivation. They also suggested in case SAP is kept below Rs 200, a bonus system for high yielding variety can be introduced to suit both mill-owners and farmers. But farmers' interest should not be compromised in any way, they said. The cane production is dropping because farmers are switching over to other crops giving more incentives. Total cane produced in 2007-08 was 1,608 lakh tonne which dropped to 1107.82 lakh tonne in 2008-09 and this year it is expected to drop by 16-30%.

"The drop in the cane production and yield would be depending on the impact of drought in different regions," said Sudhir Dubey, a farmer. The sugar industry is the only big industry left in UP. Over 45 lakh cane farmers are dependent on it, which also provide employment to over two lakh people. A loss to sugar industry would affect a huge population. Drop in cane production would also mean further rise in sugar prices which at present are Rs 35-40 per kg. This will hit the common man. Sugar based industries which consume about 60-70% of produce will also be forced to increase prices of their products.

The mill owners want SAP to be between Rs 160-170 per quintal. "Since there is a crisis, mills will pay more than the SAP fixed by the government. We don't want farmers to suffer but a higher SAP would disturb market in coming years, particularly in case of a glut. The SAP fixed this year will be the base price for next year. Hence, a steep hike this year would create problems next year," said a senior officer associated with sugar mills association. Mill owners also want restriction on Khandsari and Jaggery units which they said spoil market and waste cane. Further, they also want, reforms in tax structure.

source: TOI