Politics Insight News Without Politics
(Pi Bureau)
Virendra Singh Rawat
Business Writer
Uttar Pradesh sugar sector, which is estimated at over Rs 35,000 crore and sustaining 4 million farmers, would witness the start of its next crushing season in another 2-3 weeks.
During 2016-17 crushing season, UP had clocked sugar production of 8.75 million tonnes (MT) compared to 6.82 MT during 2015-16, thus showing 40 percent higher output.
At present, there are 116 sugar mills in UP, of which bulk of 91 belong to the private sector, followed by cooperative sector at 24, while UP State Sugar Corporation Limited (UPSSCL) accounts for a single operational mill. During the coming season, 120 mills are touted to participate in the crushing season.
UP is the country’s top sugarcane and sugar producer, trailed by Maharashtra. However, Maharashtra accounts for higher sugar recovery per unit of cane crushed compared to UP due to its humid climate.
Meanwhile, the UP sugar mills owe arrears of over Rs 1,130 crore to the cane farmers for the previous 2016-17 season. Against consolidated payables of Rs 25,386 crore, had collectively paid about Rs 24,256 crore, which leaves Rs 1,130 crore as arrears.
Earlier, the Yogi Adityanath government had promised to settle cane arrears within the stipulated timeframe. However, despite tough posturing and some action by the state dispensation, the defaulting mills have yet not acted to settle arrears.
