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LATEST NEWS UPDATES | UP cane farmers wait for miller's price

UP cane farmers wait for miller's price

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published Published on Nov 8, 2010   modified Modified on Nov 8, 2010

With mills in Uttar Pradesh yet to begin crushing, farmer leaders have decided to hold their agitation and wait till mills open and declare the price at which they will buy cane. Millers, on the other hand, are of the firm view that they cannot operate feasibly at the state government mandated SAP of 205/quintal and there is no way they can afford to pay an incentive over it, as demanded by the farmers.

Large number of farmers led by Rakesh Tikait of Bhartiya Kisan Union held a demonstration at Jantar Mantar in New Delhi on Monday. They demanded both the central and state governments to revisit the minimum support prices of various commodities and foodgrain in view of soaring food inflation.

Mr Tikait said that they would hold another meeting on November 13-14 during which they will firm up the strategy. He said that the millers have not yet started crushing in UP and they are waiting to see what prices they would pay. He said that farmers will not settle for anything less than 290/quintal for selling their cane and if the millers refuse, they will divert their produce to jaggery units and kholus. Besides sugar, the millers also make a profit on by-products and co-generation power units and they can easily pay a higher price, he said.

Mr Tikait added that the farmers are united on the issue this time and they would do a repeat of last year’s when the farmers refused to sell cane to the millers. He also demanded that there should be a long-term ban on import of sugar. If sugar imports are allowed, they will seize the consignment and burn it and not allow the mills to process it.

Secretary general of UP Sugar Mills Association Shyam Lal Gupta said that the millers have decided to start crushing only around November 20 as the recovery of sugar from cane is currently very low. He said the SAP decided by the state is very high and if they begin crushing immediately they would be doubly hit as the recovery is very low.

Mr Gupta said that recovery is expected to improve after a week or two and the millers have thus decided to begin crushing around November third week. Currently , only two sugar units have started crushing in UP.


The Economic Times, 9 November, 2010, http://economictimes.indiatimes.com/markets/commodities/UP-cane-farmers-wait-for-millers-price/articleshow/6892238.cms


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