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Why UP farmers are moving away from 'cash crop' sugarcane -Archana Shukla

-MoneyControl.com

Uttar Pradesh is the leader in sugarcane farming and sugar and the largest contributor to the state economy. But, both these statuses may soon be lost owing to the recent crisis, where payments have not being made in time.

The once touted "cash crop" hasn't been yielding the dividends it used to in the past. According to the data from the Uttar Sugar Corporation, cropping area has seen a steep 13-percent fall since 2014-15. A further 1 percent decline is anticipated this year. CNBC TV18's Archana Shukla travelled to Behraich district in the Terai belt in Uttar Pradesh to find out why. Uttar Pradesh is the leader in sugarcane farming and sugar and the largest contributor to the state economy. But, both these statuses may soon be lost owing to the recent crisis, where payments have not being made in time. And this is forcing farmers to move away from this lucrative crop of sugarcane to other crops like that of paddy. Sugarcane is bitter for farmers in this belt of Begampur and Soharur in district Behraich who sell their cane to the Chilwariya unit of Simbhaoli Sugars. Payment from this mill has been pending since November 2015, and for some since last year. Sugarcane (Control) Order, 1966 stipulates that part payment of cane, if not made within 14 days, can attract a penalty of 15 percent interest. But, its provision has never come to farmers rescue.

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