This Article is From Feb 14, 2017

UP Election 2017: In Sugar Belt, Farmers Sour About Cane Dues

Raj Kumar has carted 100 quintals of sugarcane to mills, but got paid for only 40 quintals.

Lakhimpur Kheri: As Raj Kumar navigates his bullock cart, loaded with sugarcane, into a private sugar mill in Lakhimpur Kheri, delayed payments for his crop are uppermost on his mind. The district is just one in the sugar belt of Uttar Pradesh, where, more than demonetization, this is one subject that is expected to affect the outcome in 105 seats.

Since the harvest season started last November, Raj Kumar has carted 100 quintals of sugarcane to mills, but got paid for only 40 quintals. And while the state government law on sugarcane purchase stipulates that interest will be paid in cases of delay beyond 14 days, in October 2016, Akhilesh Yadav's government waived interest on 2015 purchases, saying sugar mills needed to survive and serve the larger interest of farmers. The 45-year-old farmer says he is not at all sure of getting paid. "I asked them. they said they will pay when they get money. What can I say?" he said.

The state government has increased cane price by Rs 40 a quintal - to Rs 315 for the 2016 - 17 sugarcane season. In his election rallies, Chief Minister Akhilesh Yadav had repeatedly highlighted the hike - but hikes in Sugarcane  purchase prices happened only twice in his 5-year tenure .

But of Lakhimpur Kheri's nine sugar mills -- the highest in one UP district -- almost all dues for 2015-16 were cleared only by the end of the last year. Sources said there was no guarantee when the dues for this year will be paid. By May 2016, sugarcane arrears across UP for the 2015 - 16 season stood at over Rs 2,500 crore.

The BJP's big poll plank is the promise to ensure cane payments within 14 days if voted to power. But there is no clarity on how it will do so. In 2015, Prime Minister Narendra Modi had announced a loan scheme for sugar mills to clear debts. Most mills in Uttar Pradesh could not meet the terms and conditions of the loan.

In parts of Lakhimpur Kheri ,  a section of people want to give the BJP a chance. In his 3 acre sugarcane field, 25-year-old farmer Uday Raj said, "Everyone has used this issue in the elections. But the question is who will implement all these promises? My personal belief is that Modi can do more".
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