CHALLENGES IN THE WESTERN UTTAR PRADESH SUGAR INDUSTRY: COORDINATION AMONG FARMERS, WORKERS, AND GOVERNMENT

The sugar industry of western Uttar Pradesh home to more than 120 sugar mills and contributing nearly 27-30Percentageof India’s total sugar manufacture plays a crucial role in the state’s rural economy. The region supports over forty lakh sugarcane farmers and provides seasonal employment to thousands of skilled and unskilled labours. Despite this economic significance, the industry faces persistent organization challenges among farmers, mill authorities, workers, and government agencies. Farmers struggle with delayed payments, with cane arrears in Uttar Pradesh reaching 5,000-6,000 crores in recent seasons, largely due to low sugar prices and financial stress on mills. Mills also face low recovery rates averaging around 9.5-10Percentage, lower than Maharashtra’s 11-12Percentage, affecting profitability. Workers encounter seasonal employment insecurity, wage disputes, and limited social protection. Government regulations such as mandated Fair and Remunerative Price (FRP) and State Advised Price (SAP), control over sugarcane procurement zones, and frequent policy changes in export or ethanol blending add further complexity. Water scarcity, rising input prices, and climate variability have worsened production risks. This paper analyses these interconnected challenges specific to western Uttar Pradesh, highlighting how misaligned incentives and regulatory constraints disrupt coordination among stakeholders. It also proposes pathways for improving efficiency, ensuring timely payments, enhancing labour conditions, and promoting sustainable practices to secure the long-term resilience of the region’s sugar economy.