<div><em>Sugarcane farmers and the industry are at the mercy of political lobbies argues<strong> Sutanu Guru</strong></em></div><div> </div><div>It seems the NDA government is mulling a new policy imitative that will make it mandatory for Indian sugar mills to export their “surplus” output. This move to make exports compulsory comes at a time when the global market for sugar is facing a glut and lower prices. At the moment, it is estimated that that the sugar industry in India will produce 28 million tons in the next season. Since domestic consumption hovers around 24 million tons, the surplus “stock” with sugar companies will go beyond 10 million tons.</div><div> </div><div>Just look and weep at the logic behind this seemingly stupid policy move. According to media reports, policy makers and bosses of sugar companies know that they will incur losses if they export at the moment since prices are very low; lower even than the cost of production. How does that help the government, the farmer and the sugar company? It seems “compulsory” exports will generate revenue for companies (even if at a loss) which they can then use to repay long standing dues to sugar farmers. Currently, it is estimated that sugar mills owe more than $2.5 billion or Rs 16,000 crore approximately to sugar cane farmers. This has become a pattern in India: sugarcane farmers demand higher prices because of higher input costs and governments at the center and the state willingly oblige. The sugar mills then delay payments to farmers claiming they have no money to clear even old dues. A crisis develops and farmers reach a stage of revolt. The political “bosses” then step in and the issue is somehow sorted out. The latest bizarre attempt to make exports compulsory is perhaps one example of how the perpetual crisis is being “solved” this time.<br> </div><div>The bottom line is that there is too much political interference in sugarcane and sugar. If prices go beyond Rs 50 or so due to a shortage, there is such a hue and cry in the mainstream media that the government is made out to be a monster. No one asks if middle class households whose children spend upwards of Rs 1,000 on a weekend burger party would go bankrupt if their monthly sugar bill goes up by Rs 30 or so. So diktats are issued and there is brazen interference with the market forces. Not that all this helps the sugarcane farmer as he perpetually waits for his dues to be cleared by sugar mills.</div><div> </div><div>Western Uttar Pradesh and Maharashtra see the worst kind of this political interference because they are the two largest sugarcane producing states. In the 2014 Lok Sabha elections, the BJP succeeded for capturing the “sugar” vote bank in the two states. Now, it is scared angry farmers will teach it a bitter lessons during assembly elections due in Uttar Pradesh in 2017. But how will making sugar exports compulsory help in the long run? No one has the answer. Sadly, sugar is a symbol of the crazy policy approach of the government towards agriculture as a whole. There are no winners in this political game; only losers.</div><div> </div>
