Sugarcane farmers and the sugar industry in India are facing relief from the upcoming general budget. The same farmers are confident that there will be a permanent solution to the problem of the outstanding cane price. At the same time, sugar mills want a special package along with changes in the sugarcane price policy. It is difficult for the farmers that they do not get regular payment of sugarcane prices. Apart from this, about three thousand crore rupees of the last season have not been paid yet. In the current session, this amount is increasing day by day. Kisan Mazdoor Sangathan convenor VM Singh says that due to non-payment of time, sugarcane cultivation called 'cash crop' is becoming a bargain.
Economic Survey 2019-20: Economic survey of country presented in Parliament, GDP growth estimate
In order to fulfill the promise of doubling the income of farmers, there should be a robust system of timely payment of sugarcane prices. The special package should be given to settle the old payment. Rakesh Tikait, spokesperson of the Indian Farmers Union, says that in order to deal with the sugarcane crisis, the mills should make arrangements to not let go of sugar production only. Apart from this, the mill operators believe that it is difficult to save the industry for more days in deteriorating conditions. Sugarcane is not crushing in 71 mills this season. All the mills of other states except Uttar Pradesh are not running. Out of 189 sugar mills in Maharashtra last year, only 139 mills are operating this time. Similarly, sugarcane is not crushing in two mills in Karnataka, one in Gujarat and seven in Andhra Pradesh and nine in Tamil Nadu. The condition of the mills is deteriorating due to the non-lifting of sugar. About 145 lakh tonnes of sugar is lying in the mills last season.
Apart from this, the expected benefits of sugar exports are also not being available. There is a demand for Indian sugar only in countries like Sri Lanka, Malaysia, Bangla Desh, and Indonesia. The financial situation of the mills is deteriorating due to the constant price of sugar in the market and not being lifted in time. The pressure of the farmers to pay interest on the outstanding sugarcane price is a headache for the sugar mills as well as the government. The same mill operators say that the system of giving 15 percent interest is impractical. Banks have also started pulling out with the help of mills. With this, Director General Abinash Verma says, the sugarcane pricing system should be fine for the betterment of the sugar industry. Prices should be fixed on the basis of income of sugar mills. The same ethanol policy should be improved and the bank limit of mills should not be made only on sugar stocks. Along with this, farmers should get immediate payment of sugarcane prices or get interested in the arrears. A strong arrangement should be made to give one and a half times the cost of sugarcane prices. Give a package to improve the condition of the sugar mills or acquire them.
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