Paddy, sugarcane payments top Rs 20,000 crore in Uttar Pradesh

Farmers in Uttar Pradesh have received more than Rs 20,000 crore over the past four months for their paddy and sugarcane produce. 

With the UP sugarcane crushing and paddy procurement seasons underway, the total farm payments are expected to more than double at the end of the respective marketing cycles.

While sugarcane payments by private and government-owned mills are to the tune of over Rs 9,000 crore, the corresponding figure for paddy by government agencies, including Food Corporation of India (FCI), are close to Rs 11,000 crore so far.

UP Cane and Sugar Commissioner Sanjay Bhoosreddy said the state was committed to ensuring prompt payments to farmers, and the situation was being regularly monitored. “The sugar mills have been issued stern directives for outstanding sugarcane payment and the process is being reviewed on a regular basis,” he said.  

The sugarcane payment of Rs 9,144 crore represents nearly 71 per cent of arrears pertaining to the current 2022-23 crushing season (October-September).

Of the 120 UP sugar mills, the private companies account for the maximum of 93 units, followed by 24 cooperative sector plants and three of UP State Sugar Corporation (UPSSC).

Bhoosreddy said UP sugarcane payments totalled more than Rs 1.91 trillion in the last six years.

Since UP Annual Budget 2023-24 will be tabled in the run up to the 2024 Lok Sabha polls, the financial statement is expected to provide a host of sops to the rural sector.

Prompt payment of prominent cash crops, including wheat, paddy and sugarcane, with composite annual payout of more than Rs 50,000 crore under the institutional mechanism in UP, will help the government in its pro-farm narrative during electioneering.

Meanwhile, UP is targetting to procure 7 million tonnes (Mt) of paddy in the current kharif marketing season 2022-23. So far, the state has purchased about 5.8 Mt of the cash crop, which represents 82 per cent of the seasonal target.

Recently, UP Chief Minister Yogi Adityanath directed authorities to ensure that farmers do not face hurdles in selling their produce at the government’s procurement centres numbering 4,200 across the state.

In the 2022-23 kharif season, the MSP of paddy has been fixed at Rs 2,040 per quintal (100 kg) for common paddy and Rs 2,060 per quintal for Grade A paddy.