Sugarcane Mills Achieve 96% Payout Amidst Concerns of Uneven Payments

Amidst the ongoing sugar season in India, recent data from the sugar commissioner's office reveal progress in sugarcane processing. A total of 202 mills are actively crushing sugarcane, processing 441.01 lakh tonnes (lt) and accruing a cumulative gross payable Fair and Remunerative Price (FRP) of Rs 13,642 crore. Impressively, mills have disbursed Rs 13,056 crore, covering 96 percent of the total payable FRP, with arrears amounting to Rs 586 crore, sparking demands for prompt payments. However, regional disparities and concerns over sugarcane shortage are emerging, raising questions about the overall landscape of sugarcane cultivation in India.

Encouraging Payouts and Persistent Arrears

The breakdown of mill performances showcases notable achievements, with 85 sugar mills fulfilling 100 percent of their FRP obligations. However, 50 mills have paid between 60 and 80 percent of the total FRP, leaving 117 factories with pending payments. This situation has led to calls from farmers' organisations for swift and complete FRP payments, particularly from mills yet to meet their obligations.

Regional Disparities and Challenges in Transport

Amidst the peak of the sugar season, certain mills, especially those near the Karnataka border, have urged farmers not to transport sugarcane across the state due to perceived scarcity. Meanwhile, sugarcane farmers in Marathwada and Vidarbha regions are grappling with concerns over delayed sugarcane lifting and dwindling water reservoirs, fearing a direct impact on crop yield.

BB Thombare, President of the West Indian Sugar Mills Association, allays fears of sugarcane shortage, attributing an unexpected 8-10% increase in sugarcane crop to recent rainfall.

Price Hikes in Uttar Pradesh

In Northern India, the Uttar Pradesh government has announced a Rs 20 per quintal increase in sugarcane prices, presenting it as a goodwill gesture to farmers. However, this move has faced widespread dissatisfaction, with farmers expressing disappointment and demanding a fair price that aligns with escalating daily expenses in agriculture.

The Indian sugarcane landscape reflects a mix of accomplishments and challenges. While mills have made significant strides in FRP payouts, regional disparities, transportation issues, and discontent over price hikes underscore the complexity of sugarcane cultivation in the country. As stakeholders navigate these issues, the fate of the sugarcane sector remains a focal point in India's agricultural narrative.