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Published 19 Jan, 2008 12:00am

SANGHAR: Brokers and mills fleecing sugarcane growers

SANGHAR, Jan 18: Brokers, aided by sugar mill owners, are fleecing sugarcane growers, who are compelled to sell sugarcane at throwaway prices because they urgently need money to repay loans and purchase seeds and fertilisers and pay for other inputs for next crops.

According to assessment of this correspondent, sugar mills refuse to buy sugarcane at government-fixed support price of Rs67 per 40kg, offering growers anywhere between Rs55 and Rs60 per 40kg.

Even if a farmer agrees to sell his produce at this rate, he has to overcome other problems.

For certain varieties of sugarcane, mills offer as little as Rs30-35 per 40kg.

Then there is the problem of obtaining indents for the supply of sugarcane faced by small growers, who is kept waiting for weeks. If the farmer succeeds in obtaining the prized indent, it is difficult for him to find vehicles for transporting his produce to the mill. Farmers arranging the transport themselves are far better off than those who depend on sugar mills’ transport, who have to wait for several days.

During all this time, the harvested sugarcane remains dumped in fields, losing moisture and, therefore, weight.

Transporting the sugarcane to the mills is not enough. The loaded vehicles have to wait outside the mills anywhere between two to five days, resulting in further weight loss.

Farmers look relieved once their produce is allowed inside the mill.

But this relief is short-lived.

At the weighbridge, the farmer is shocked to learn about a large gap between the actual weight and the weight acknowledged by mill functionaries. Sometimes, as much as 40 per cent of the total weight is deducted on one pretext or the other.

Growers’ nerves are tested again when he tries to get the money owed by the sugar mills.

He gets paid after an excruciatingly long wait, ranging between several months and years. Farmers liken getting their payment released from sugar mills like wresting a prey from the jaws of a crocodile.

Farmers saw a way out of their dilemma by selling sugarcane at throwaway prices to brokers, who offer between Rs35 to Rs43 per 40kg. Farmers also have to bear freight charges besides facing losses because of deduction in weight. Dealers pay farmers after 20 days but if a farmer seeks early payment, they further reduce the buying rate.

Several brokers have defrauded growers, running away without paying growers any money.

Many farmers have vowed not to plant sugarcane next year.

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