Not paid, cane growers on warpath against govt, mills

Ruchika M Khanna

Tribune News Service

Chandigarh, August 26

Three months after the 2018-19 cane crushing season came to an end, the cash-strapped government is yet to pay the subsidy of Rs 25 per quintal to growers in the state.

As a result, farmers have launched an agitation against the government. Hundreds of cane growers held a protest outside the sugar mill at Mukerian and another protest was held outside the office of Hoshiarpur DC today. Two days ago, farmers had protested in Tanda, demanding their dues from the sugar mill.

In December last year, after private sugar mills refused to pay the state advised price (SAP) of Rs 310 per quintal to the farmers, citing steep fall in prices of sugar, the government had agreed to bear part of the SAP (Rs 25 per quintal). The private sugar mills, owned by politicians from across the political spectrum, had expressed their inability to pay “high” SAP for sugarcane, as sugar prices then had dropped to Rs 2,900 per quintal. It was only after the assurance given by the state to pay part of the SAP (Rs 25 per quintal) that these private sugar mills had started crushing cane.

However, eight months down the line, the state has been unable to release their part of the subsidy to the seven private sugar mills. “We have been forced to take the path of agitation. On one hand, the government talks of diversification, while on the other, it falters on supporting us,” said Jangveer Singh, president, Doaba Kisan Committee, which is spearheading the agitation.

Data collected by The Tribune shows that of Rs 136.62 crore that the state had to pay to the farmers, Rs 70 crore has been disbursed. However, because of floods, the dues have been held back as most money is going towards flood relief. At many places, the money has not been released by the mills.

Gurpratap Singh, a cane grower, said some mills had received the government’s share of SAP, but were not disbursing it further to farmers. A team of officials from the agriculture and cooperative departments today held a meeting with the mill owners and cane growers.

Jaswant Singh, Cane Commissioner, said he was hopeful of the issue being resolved within a month. “The government has already released Rs 70 crore, and the remaining dues will be paid in due course,” he said.

Other than the Punjab government’s share of SAP not being released, both private as well as cooperative sugar mills too have pending dues running into over Rs 715 crore. While private sugar mills (other than the one in Amloh that has cleared all its dues) have to pay Rs 440 crore to farmers, the cooperative mills are yet to clear payment of Rs 275 crore to farmers, which includes Rs 25 crore of 2017-18.