Boosting sugarcane farmers’ income and mill efficiency

Relief for sugarcane farmers

Uttar Pradesh, the leading sugarcane-producing state in India, is making significant strides to enhance the income and living standards of its sugarcane farmers. The state government has already disbursed over ₹2.53 lakh crore to sugarcane farmers. To maximize benefits for farmers, the state government is focusing on modernizing sugar mills in Baghpat and Muzaffarnagar. The government’s transparent processes for record-setting payments, price increases per quintal, and licensing for khandsari units are set to further sweeten the deal for sugarcane.

₹65 Crore Grant for Loan Provision

In a meeting chaired by Chief Secretary Manoj Kumar Singh, plans were discussed to improve the functionality of the Baghpat Cooperative Sugar Mill through technical upgradation and modernization, with an estimated cost of around ₹84.77 crore. The financial arrangement will involve 50% state government contribution as equity and 50% as a loan. The 2024-25 budget includes a provision for ₹65 crore in grants for loans. The mill currently processes approximately 4.82 lakh tonnes of sugarcane.

₹88.02 Crore Investment for Modernization

Plans for significant upgrades at Ganga Kisan Cooperative Sugar Mill Ltd., Morna, Muzaffarnagar, include increasing the crushing capacity from 2500 TCD to 3000 TCD, along with technical upgradation and modernization, with an estimated cost of ₹88.02 crore. Given the ample availability of sugarcane in the command area, the mill aims to process approximately 4.85 lakh tonnes of sugarcane currently, with plans to increase this to 5.40 lakh tonnes over the next five years. This initiative is expected to enhance the mill’s production capacity and efficiency, benefiting sugarcane farmers.

Government Payments to Farmers

The Uttar Pradesh government has already disbursed over ₹2.53 lakh crore to sugarcane farmers. With a large number of farmers in the state, sugarcane remains a highly sensitive crop, often plagued by issues such as payment arrears and delays in processing. Before Yogi Adityanath’s government came to power in March 2017, payment arrears were a significant concern. The Yogi government prioritized clearing these payments upon taking office. Chief Minister Yogi Adityanath has directed that mills in areas where farmers still have standing sugarcane should continue operating until the harvest is complete. This measure is aimed at ensuring timely payments and complete processing of farmers’ crops.