Its been bumper for the farmers of UP this year. It’s not the production but the prices which the farmers are paid for their sugarcane.on an average this year farmers are expected to earn 8lac till 2012march.Its bumper realization.
· CY there has been 17% rise in the sugarcane prise
· 92% since past 4 Yrs
· 46% in past 2 yrs
· Where previously for 5 years in Mulayam Singh regime there was 32% rise in 4-5 yrsin prices of sugarcane.
· Income has doubled for the same level of cane produced
· Sugarcane accounts around 14% of the total cultivation area in UP
· 3.5 Million farmers
· 125 sugarmills
· Farmers have tasted the sugar the most as they have the fast recovery,high prices
Thus this shows that its just one of the political way ,where the prices are heading .
Logically if you see, there is really no growth for the economy because the sugar mills are to post Record loss of more than Rs 3750Cr this year..
BJP SAP (state advised price) to increase by 25% to around 300/quintal
· Companies have exhausted the working capital
· Banks have no trust to fund the sugar mills because of lower recoveries
· When a comparison is done Price rise
Sugarcane -46%
Paddy-8%
Wheat-4%
This really suggest sugar has been the favorite among the growers as well as the supporters ie the (state government Chief Mayawati )
· Area under cultivation 28.5 lac Hectares 07-08
· Area under cultivation 17.88lac Hectares 09-10
· Area under cultivation 22.5 Lac Hectares 11-12
This year farmers are expected to receive 16000cr which way above the stipulated by the National Rural Employment Guarantee scheme ,it’s almost 4 times of the approved or expected 3600cr outlay.
Crushing season starts around end November and continues till march or extended a week of April.
During the regime of Mulayam
There was encouragement for the setting up of factories in the UP there were many benefits
· Creation of employment
· Development of state
· Where the capital was adequately coming to the state
· In all ways there was balance growth
Now Mayawati
· Imbalanced growth
· Farmers are only given the preference
· Sugar mill owners are sidelined
· Under recovery for their produce
· Excess payment received for the produce of the cane farmers
· Only for the vote banks
Policies that was scrape as soon as Mayawati regime took over the bright sugar policies for the state
· Capital subsidies
· Benefits for the entry tax exemptions
· Reimbursements for the transportations
· Stamp Duty exemptions
· Registration Charges
· Purchase Tax 5-10 Yrs
· Companies investing above Rs 350 Cr in new sugar Cos exemptions
· The two major Giants Balrampur Chini Ltd & Bajaj Hindustan Ltd the major sugar producers are facing a very tough outlook for the future.
· Bajaj Hindustan Which has its entire sugar produce in Up , it has increased its production 5 fold since its inception
WORSE
The glamour for the sugar mills is just not there no fresh investments by the industry.where corporate India is very cautious before investing in the state ,as if the government changes hands there may be policy changes where it may not be beneficial for any one .Where between the battle of the political parties one has to give up.The unknown farmers who have been the victim of Mayawati regime.this is how the politics is all about give and take.
Fo sugar mills we would say is that – sugar is the only commodity where there is a lot of interference by the government and is sold below the market price.
Sugar Milss has to hand over -10% of their total produce to the Government PDS –public distribution system that too not at the market price but around 60-65% of the MP.they even don’t have the freedom to export.Its all bleak for the sugar Miulls in UP.
