Lucknow

In Uttar Pradesh, the arrears of sugarcane farmers on sugar mills have gone up to Rs 12,000 crore. The Uttar Pradesh government is planning to give a quintal of sugar to the farmers in lieu of cash. The farmers, desperate to get some cash during the ongoing lockdown, are saying that the sugar is of no use to them and are asking for cash instead.

Anjani Dixit, a sugarcane farmer from Sherpur Simariya in Lakhimpur Khiri, had sold 15 acres of sugarcane to the Gola Sugar Mill in November, but it has not yet been paid for. He informed Gaon Connection over the phone: “About Rs 7-8 lakh is outstanding. So far, only one slip has been paid for. Now the manager of the sugar mill is asking me to take 100 kg of sugar instead. Now, what will we do so much sugar? We need money. The wages of sugarcane harvesting could not be paid so far. Since we are already suffering due to the lockdown, we need more money. We will not even be able to sell sugar.”

Uttar Pradesh is at the forefront of sugar production in the country. More than 50 lakh farming households are involved in sugarcane cultivation within the state. In 2019-20, sugarcane was cultivated in an area of 26.79 lakh hectares and 117 sugar mills are operating in the current crushing session. The sugar industry in the state is worth Rs 40,000 crore.

In Uttar Pradesh, the Yogi Adityanath government has decided to provide sugar to sugarcane farmers in lieu of outstanding money for the year 2019-20 season. A statement issued by the Uttar Pradesh Cane Commissioner’s Office informed that the decision has been taken based on the demand made by the sugarcane farmers.

As per the communique, the farmers can take a quintal (two bags of 50 kg) of sugar from the sugar mill after leaving his sugarcane there. In the meantime, he will have to observe social distancing. The price of sugar given to the willing sugarcane farmers by the sugar mills will be adjusted in their outstanding sugarcane amount of 2019-20.

Every month, one quintal sugar will be given as per the minimum selling price (MSP) of that day or the minimum selling price of the previous day. The scheme will be applicable from April to June, 2020. The sugar mills will give sugar only to the farmers who would be willing to take it. The distribution of sugar will happen under the sales quota allocated by the government to the concerned mill for the month. The farmers have to carry home sugar through their means and the GST (goods and services tax) upon this will also have to be borne by the farmers.

The government, in its release, has claimed that it will provide the benefit of more than Rs 1,300 to Rs 1,400 per quintal to the farmers. It is also being said that the scheme will benefit about 50 lakh farmers in the state.

However, Sardar VM Singh, a farmer leader and convener of the National Farmers’ Labour Organisation, who has long been fighting for the sugarcane farmers, believes that it is not going to benefit the farmers but actually harm them.

He told Gaon Connection over the phone: “Today, farmers need money. They too have household expenses. How far would a bag of sugar take them? It won’t even fill up a tractor trolley. The government has not increased the sugarcane rate in the past three years. Please understand this — when a farmer would buy and sell sugar at Rs 315 per quintal, at least, Rs 157 would have to be paid as the GST. If one looks at it, a farmer will get only Rs 299 per quintal of sugarcane.”

He added: “The cane commissioner says that the farmers will earn a profit of Rs 1,300- 1,400. It’s not going to happen. The farmers don’t need this profit. The government should just provide the interest on the farmer’s arrears, it will be adequate to benefit the farmers. Interest must be paid as per court orders.”

However, Suresh Rana, the state cane minister, has lauded the government’s decision. He told Gaon Connection over the phone: “We have taken this decision at the behest of the farmers. Many farmers called us up and informed that they are suffering a lot because of the lockdown. If they get sugar at the mills, they will not have to buy it in the market. It will also benefit the farmers and it is totally voluntary. If and when they want, they will be given sugar.”

Achal, a sugarcane farmer living in Tisotara in Bijnor district — the sugarcane belt – said that he has little use of so much sugar. He said: “I have a total of 10 people in my house and we only consume about 30 kg of sugar in a month. Now, if we take one quintal sugar, what would we do with it? We cannot even sell it anywhere because of the lockdown.”

The Uttam Sugar Mills in Bijnor owes more than Rs 2 lakh to Achal for the current season. “I need money for the next crop,” he added. “The mill is not paying the money and the government is giving sugar instead of the money. This will further increase our distress.”

Arrears of about Rs 12,000 crore

During the time of the lockdown, while the farmers seek more help from the government, the arrears of sugarcane farmers in the state are increasing.

The arrears of farmers on sugar mills of Uttar Pradesh have gone up to Rs 12,000 crore whereas until February, the same arrears stood at Rs 7,000 crore. According to the Uttar Pradesh Sugar Mill Association, until April 14, 2020, the arrears on private sugar mills are the highest. Talking about the government sugar mills, Bajaj Group’s sugar mill owes the farmers the most.

Meanwhile, the rule stipulates that the farmers should be paid within 14 days. Under the Sugarcane Control Order, 1966, the sugar mills are to pay to the farmers for the sugarcane within 14 days of delivery, failing which they also have to pay 15 per cent annual interest on late payments.

Regarding payment of arrears, the Uttar Pradesh sugarcane minister, Suresh Rana, informed Gaon Connection: “We have paid Rs 17,000 crore. Daily payment is being made in the mills. And, at the moment, the farmers are not talking about payment, they are worried about the current season’ crushing. In most of the states, sugar mills are closed, only ours are operating. Since right now the mills are running, there should not be any talk of payment or arrears.”

Ompal Singh, the unit head of Bajaj Hindustan Sugar Limited at Lakhimpur Khiri, said: “As the sugar sale is taking place, we are paying. We pay 85 per cent of the total sugar sale to the farmers. Now, as soon as the sales increase, we will pay the farmers in the same way.”