Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
87
CHALLENGES IN THE WESTERN UTTAR PRADESH SUGAR
INDUSTRY: COORDINATION AMONG FARMERS, WORKERS,
AND GOVERNMENT
P iyanka S i as a a
Ph.D Schola , Depa men o Economics, Dayalbagh Educa ional Ins i u e (Deemed o be
Uni e si y), Dayalbagh, Ag a, U a P adesh
Ci e This A icle: P iyanka S i as a a. (No embe 2025). Challenges in he Wes e n
U a P adesh Suga Indus y: Coo dina ion among Fa me s, Wo ke s, and Go e nmen . In P oceedings o he
Eu opean Summi on In e disciplina y Resea ch and De elopmen (pp. 87-94). Pe ambalu , Tamil Nadu, India:
C ys al Pen Publica ion.
ISBN: 978-93-49435-80-3
Publishe Websi e: www.c ys alpen.in
Copy Righ : © 2025 C ys al Pen Publica ion (CPP). All igh s ese ed. This is an open access a icle
dis ibu ed unde he e ms o he C ea i e Commons A ibu ion License (CC BY), which pe mi s un es ic ed
use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed.
DOI:
Abs ac :
The suga indus y o wes e n U a P adesh home o mo e han 120 suga mills and con ibu ing nea ly
27-30Pe cen ageo India’s o al suga manu ac u e plays a c ucial ole in he s a e’s u al economy. The egion
suppo s o e o y lakh suga cane a me s and p o ides seasonal employmen o housands o skilled and
unskilled labou s. Despi e his economic signi icance, he indus y aces pe sis en o ganiza ion challenges
among a me s, mill au ho i ies, wo ke s, and go e nmen agencies. Fa me s s uggle wi h delayed paymen s,
wi h cane a ea s in U a P adesh eaching 5,000-6,000 c o es in ecen seasons, la gely due o low suga p ices
and inancial s ess on mills. Mills also ace low eco e y a es a e aging a ound 9.5-10Pe cen age, lowe han
Maha ash a’s 11-12Pe cen age, a ec ing p o i abili y. Wo ke s encoun e seasonal employmen insecu i y,
wage dispu es, and limi ed social p o ec ion. Go e nmen egula ions such as manda ed Fai and Remune a i e
P ice (FRP) and S a e Ad ised P ice (SAP), con ol o e suga cane p ocu emen zones, and equen policy
changes in expo o e hanol blending add u he complexi y. Wa e sca ci y, ising inpu p ices, and clima e
a iabili y ha e wo sened p oduc ion isks. This pape analyses hese in e connec ed challenges speci ic o
wes e n U a P adesh, highligh ing how misaligned incen i es and egula o y cons ain s dis up coo dina ion
among s akeholde s. I also p oposes pa hways o imp o ing e iciency, ensu ing imely paymen s, enhancing
labou condi ions, and p omo ing sus ainable p ac ices o secu e he long- e m esilience o he egion’s suga
economy.
Key Wo ds: Suga cane Fa me s, Cane A ea s, Reco e y Ra e, Mill P o i abili y, Sus ainable Suga Economy,
S a e Ad ised P ice (SAP), Fai and Remune a i e P ice (FRP), Labo Challenges, Policy Regula ion, E hanol
Blending, Wa e Sca ci y, Clima e Va iabili y, S akeholde Coo dina ion
In oduc ion:
Wes e n U a P adesh o ms he hea o India’s suga economy, accoun ing o nea ly 70Pe cen age o
he s a e’s suga cane p oduc ion and con ibu ing signi ican ly o India’s o al suga ou pu . The egion hos s
o e 120 ope a ional suga mills a mix o coope a i e, p i a e, and go e nmen -owned uni s ha di ec ly
in luence he incomes o nea ly o y lakh suga cane a me s. Wi h suga cane cul i a ed on mo e han 20 lakh
hec a es in U a P adesh, he c op se es as a p ima y sou ce o income o u al households. The indus y also
deli e s seasonal employmen o housands o mill wo ke s, d i e s, cane cu e s, and con ac ual labou e ’s,
making i one o he la ges ag o-based employe s in he egion. Despi e i s massi e economic oo p in , he
suga sec o in wes e n U a P adesh aces pe sis en challenges ha dis up coo dina ion be ween a me s, mill
managemen , wo ke s, and go e nmen au ho i ies. F equen cane paymen a ea s amoun ing o 5,000-6,000
c o e place a me s unde inancial s ess. Mills s uggle wi h low eco e y a es a e aging 9.5-10Pe cen age,
in e io o Ka na aka and Maha ash a, leading o educed p oduc i i y. Wo ke s endu e unbalanced
employmen , wage dispu es, and inadequa e wel a e suppo . Fu he mo e, go e nmen -manda ed S a e Ad ised
P ices (SAP), coupled wi h luc ua ing suga ma ke p ices, c ea e inancial imbalances wi hin he supply chain.
This in oduc ion ou lines he in e linked s uc u al and ope a ional ma e s ha demand a comp ehensi e
app oach o imp o e coo dina ion and ensu e longs anding sus ainabili y o he suga indus y in wes e n U a
P adesh.
Li e a u e Re iew:
S udies such as Singh (2018) highligh ha wes e n U a P adesh con ibu es nea ly 70 Pe cen age. o
he s a e’s suga cane ou pu , making i he co e o he egion’s u al economy. The li e a u e emphasizes ha
suga cane p o ides s able, yea - ound income o millions o a me s compa ed o o he c ops.
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
88
Acco ding o Khan & Ve ma (2020), wes e n U a P adesh houses o e 120 suga mills, he highes
concen a ion in India. These mills d i e indus ial g ow h, u al employmen , and anspo ne wo ks, o ming a
backbone o he egional economy.
Se e al s udies, including Sha ma (2019) and Rao (2021), iden i y delayed cane paymen s as he
bigges challenge. Cane a ea s o en exceed ₹5,000-6,000 c o e, se e ely a ec ing a me li elihoods and
c ea ing ension be ween a me s and mill managemen .
Resea ch by Gup a (2022) shows ha U a P adesh’s SAP ypically 20-40 pe quin al highe han FRP
c ea es inancial s ain on mills when suga p ices all. This policy imbalance is ci ed as a oo cause o a ea s
and mill losses.
S udies by Nai & Singh (2020) no e ha wes e n U a P adesh eco e y a es a e age 9.5-10
Pe cen age, signi ican ly lowe han hose o Maha ash a (11-12 Pe cen age). This esul s in educed
p o i abili y and limi s mills’ abili y o pay a me s on ime.
Jadha (2021) epo s ha suga mill wo ke s ace seasonal job insecu i y, inadequa e wages, and
limi ed wel a e bene i s. Slow mechaniza ion also inc eases eliance on mig an labo om Biha and eas e n
UP, causing labo sho ages du ing peak ha es ing pe iods.
Acco ding o Rao (2017) and Pa el (2019), equen policy changes expo bans, e hanol blending
shi s, and p ice con ols c ea e unce ain y o mills. The manda o y p ocu emen o cane om designa ed a eas
u he limi s mill lexibili y.
Resea ch by Tiwa i & Singh (2019) shows ha wes e n U a P adesh aces se e e g oundwa e
deple ion due o suga cane’s high-wa e equi emen , o en 1,500-2,000 Li e s pe kg o suga . Clima e
a iabili y exace ba es wa e s ess and yield luc ua ions.
Chak abo y (2020) obse es ha ou da ed machine y, limi ed adop ion o d ip i iga ion, and slow
di usion o high-yield a ie ies educe cane p oduc i i y and mill e iciency. Technological backwa dness
di ec ly impac s p oduc ion cos s and suga eco e y.
Li e a u e om Cha u edi (2020) and Meh a (2023) s esses ha misaligned incen i es a me s
demanding highe SAP, mills seeking lowe cos s, wo ke s demanding job secu i y, and go e nmen balancing
poli ical and economic p essu es c ea e sys emic coo dina ion ailu es. Schola s
The s udy is based on seconda y da a. To s udy he ends in a ea, p oduc ion and yield o suga cane a
U a P adesh le el s udy pe iod aken as o 2014-19. Bu o alue o ou pu o suga cane, suga he s udy
pe iod is 2014-15 o 2024-25. The seconda y sou ces o da a collec ed om Go e nmen bodies o India.
Objec i es:
To s udy he majo coo dina ion challenges among a me s, suga mills, wo ke s, and go e nmen
agencies in Wes e n U a P adesh, ocusing on ma e s such as delayed paymen s, low eco e y a es,
labou insecu i y, and egula o y p essu es.
To assess he echnological, en i onmen al, and economic, ac o s a ec ing he pe o mance o he
suga indus y in Wes e n U a P adesh and ad ise p ac ical s a egies o imp o ing e iciency,
sus ainabili y, and s akeholde coope a ion.
S a is ical and Da a-Based Analysis:
Table Suga cane p oduc ion in U a P adesh, A e age, 2017-2023, (P oduc ion in Millin onnes)
The able highligh s he pe o mance o suga cane-p oducing s a es in UP om 2017 o 2023, ocusing
on hei a ea unde cul i a ion, p oduc ion, and yield me ics.
Table S a e wise a ea o suga cane in, Con inued du ing 2019-2023 (Lakh hec a e)
S a e / UT
2019-20
2020-21
2021-22
2022-23 *
A e age
(2019-2023)
% o
To al
Rank
U a P adesh
22.08
21.80
21.77
27.36
23.25
45.12
1s
Sou ce: E&S, DAC, New Delhi, *3 d Ad . Es . 2022-23
The able i led “S a e-wise A ea o Suga cane Cul i a ion Du ing 2019-2023” p esen s he ex en o
land unde suga cane in majo s a es o e a ou -yea pe iod. Fo U a P adesh, he da a show consis en ly high
le els o cul i a ion, e lec ing i s dominan posi ion in India’s suga economy. The s a e eco ded 22.08 lakh
hec a es unde suga cane in 2019-20, ollowed by 21.80 lakh hec a es in 2020-21 and 21.77 lakh hec a es in
2021-22. In 2022-23, he cul i a ed a ea inc eased signi ican ly o 27.36 lakh hec a es, aising he o e all
a e age o 23.25 lakh hec a es o he pe iod. Wi h a 45.12Pe cen age sha e o he o al suga cane a ea in he
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
89
coun y, U a P adesh anks i s among all s a es. This dominance unde sco es he c ucial ole o he s a e in
na ional suga p oduc ion and highligh s how luc ua ions in suga cane a ea in U a P adesh can di ec ly
in luence India’s o e all suga supply and policy decisions.
Table A e age suga eco e y, Pe cen age gain in, Wes e n U a P adesh
Region
2014-15
2015-16
2016-17
2017-18
Wes e n UP
9.31
10.16
10.31
10.82
Sou ce: ISMA
The able on a e age suga eco e y pe cen age in Wes e n U a P adesh om 2014-15 o 2017-18
highligh s a s eady imp o emen in ex ac ion e iciency o e he ou -yea pe iod. In 2014-15, he egion
eco ded a eco e y a e o 9.31Pe cen age, which inc eased signi ican ly o 10.16Pe cen age in 2015-16. This
upwa d end con inued in 2016-17 wi h a eco e y o 10.31Pe cen age, and he highes alue was eached in
2017-18 a 10.82Pe cen age. The da a clea ly indica e ha Wes e n U a P adesh. expe ienced a consis en ise
in suga eco e y, e lec ing imp o emen s in cane quali y, be e ag onomic p ac ices, and g adual
mode niza ion e o s in mills. This g ow h is no able because e en small inc eases in eco e y pe cen age esul
in subs an ial inancial gains o mills, gi en he la ge olume o cane c ushed annually in he egion.
S a e Cane P ice Di e en : SAP s FRP(Rs. Pe Q l)
Yea
2014-
15
2015-
16
2016-
17
2017-
18
2018-
19
2019-
20
2020-
21
2021-
22
2022-
23
2023-
24
U a P adesh
280
208
305
315
315
315
315
340
340
340
Maha ash a
220
230
230
255
275
275
285
290
305
315
Sou ce: ISMA
The able compa ing S a e Ad ised P ice (SAP) in U a P adesh wi h he Fai and Remune a i e P ice
(FRP) ollowed by Maha ash a om 2014-15 o 2023-24 shows a clea and pe sis en p ice di e gence be ween
he wo s a es. U a P adesh consis en ly o e s a much highe SAP, s a ing om 280 pe quin al in 2014-15
and ising o 340 pe quin al by 2021-22, a le el ha con inues h ough 2023-24. In con as , Maha ash a’s cane
p ice linked o he FRP began a 220-230 pe quin al in 2014-16 and g adually inc eased o 315 pe quin al by
2023-24. This di e ence highligh s he con as ing policy app oaches, U a P adesh p io i izes a me wel a e
h ough a poli ically in luenced high SAP, while Maha ash a main ains a ma ke -linked FRP sys em designed o
balance mill iabili y wi h a me income. The esul ing p ice gap places subs an ial inancial p essu e on U a
P adesh mills, which mus pay mo e o cane despi e lowe eco e y a es, while Maha ash a mills bene i om
mo e lexible p icing aligned wi h suga ma ke condi ions.
Cane Paymen A ea s:
Cane paymen a ea s in Wes e n U a P adesh emain he la ges sou ce o inancial dis ess o
suga cane a me s, as e lec ed in he consis en backlog o dues o e ecen yea s. The able indica es ha
a ea s peaked a 12,000 c o es in 2018-19 and, al hough educed sligh ly, s ill emained c i ically high a 8,500
c o es in 2020-21. In 2022-23, pending paymen s s ood a 5,900 c o es, while es ima es o 2023-24 ange
be ween 5,000-6,000 c o es, showing ha he p oblem pe sis s despi e policy in e en ions. These a ea s
di ec ly impac a me li elihoods, as many a e o ced o wai se e al mon hs some imes e en up o a yea o
hei paymen s. This delay dis up s hei abili y o buy essen ial a ming inpu s such as seeds, e ilize s, and
diesel o he nex c op cycle. As a esul , a me s o en all in o deb cycles, depend on in o mal c edi , and
expe ience heigh ened economic insecu i y. The ecu ing a ea s p oblem highligh s a deepe s uc u al
imbalance in he suga p ice chain and unde lines he u gen need o imp o ed liquidi y managemen , p icing
e o ms, and s onge coo dina ion be ween mills and go e nmen ac i i ies.
Labo A ailabili y and Wages:
The suga sec o in Wes e n U a P adesh employs nea ly 2-3 lakh seasonal wo ke s, making labo a
c ucial componen o i s ope a ional cycle. Howe e , he indus y is inc easingly acing signi ican labou -
ela ed challenges. Du ing he 2023-24 season, labou sho ages ose by 18-20 Pe cen age, la gely due o a
decline in mig an wo ke s who adi ionally suppo cane cu ing and loading ac i i ies. Despi e hei essen ial
ole, wo ke s ypically ea n only 350-450 pe day while endu ing long and physically demanding wo king
hou s. Addi ionally, a ound 70Pe cen age o cane ha es ing is s ill manual, which causes delays in anspo ing
cane o mills. These delays lead o suc ose loss, ul ima ely esul ing in lowe suga eco e y a es and a ec ing
mill p o i abili y. Mechaniza ion could add ess many o hese issues, bu p og ess emains slow because he
a e age a m size in Wes e n U a P adesh is only 1-2 hec a es, making he adop ion o la ge-scale ha es ing
machine y imp ac ical and economically un iable o mos a me s.
Wa e Sca ci y and En i onmen al S ess:
Suga cane is an ex emely wa e -in ensi e c op, equi ing 1,500-2,000 Li e s o wa e o p oduce jus
one kilog am o suga , and his pu s emendous p essu e on he al eady s essed wa e esou ces o Wes e n
U a P adesh. Nea ly 40 Pe cen age. o he egion’s blocks a e classi ied as o e -exploi ed, e lec ing se e e
g oundwa e deple ion. A eas such as Baghpa , Mee u and Muza a naga , a e wi nessing an ala ming 1-me e
decline in wa e le els e e y yea , d i en la gely by excessi e ube-well i iga ion. This con inuous ex ac ion
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
90
no only deple es aqui e s bu also con ibu es o soil salini y, which u he educes ag icul u al p oduc i i y.
Clima e change is in ensi ying hese p oblems: equen hea wa es lowe suc ose con en by 5-7Pe cen age,
di ec ly a ec ing suga eco e y, while un imely ains lead o c op lodging, causing s alks o all and educing
yields by 8-12Pe cen age. Toge he , hese en i onmen al challenges h ea en he long- e m sus ainabili y o
suga cane cul i a ion in Wes e n U a P adesh.
Technological Gaps:
Mos suga mills in Wes e n U a P adesh con inue o ope a e wi h machine y and p ocessing
echnology ins alled 25-30 yea s ago, esul ing in signi ican ope a ional ine iciencies. Ou da ed equipmen
con ibu es o lowe suga eco e y, limi ing he amoun o suga ex ac ed om each onne o cane. These olde
sys ems also consume mo e uel, aising p oduc ion cos s and educing mill p o i abili y. Addi ionally, equen
mechanical b eakdowns dis up c ushing ope a ions, causing delays and u he suc ose loss. The aging
machine y equi es highe main enance expendi u e, pu ing addi ional inancial s ain on mills al eady
s uggling wi h low ma gins and high inpu cos s. Mode niza ion o mill equipmen has he po en ial o inc ease
eco e y a es by 0.5-0.7 Pe cen age, which may appea small bu can subs an ially enhance p o i abili y when
scaled ac oss millions o onnes o cane c ushed each season. Upg ading echnology is he e o e essen ial o
imp o ing e iciency, sus ainabili y, and inancial s abili y in he egion’s suga indus y.
Ma ke P ice Fluc ua ions:
Ex-mill suga p ices in Wes e n U a P adesh o en emain below he ac ual cos o p oduc ion,
c ea ing a signi ican inancial imbalance o suga mills. In he 2022-23 c ushing season, he p oduc ion cos o
suga anged be ween 36-38 pe kg, while he ex-mill selling p ice was only 31-34 pe kg. This misma ch esul s
in a loss o 4-5 pe kg, di ec ly sh inking mill e enues and weakening hei inancial s abili y. Since suga sales
a e he p ima y sou ce o cash low o mills, hese losses se e ely hinde hei abili y o clea cane dues on
ime. Consequen ly, mills ace liquidi y sho ages, leading o delays in a me paymen s, accumula ion o
a ea s, and o e all s ess ac oss he en i e supply chain. This pe sis en p ice-cos gap emains one o he mos
c i ical ba ie s o sus ainable coo dina ion and smoo h unc ioning o he suga indus y in Wes e n U a
P adesh.
Sou ce: ISMA
The able o All-India ex-mill suga p ices (2010-2024) shows a clea long- e m upwa d end, wi h
p ices ising om a ound 2,600-3,400 pe quin al in 2010-11 o 3,700-3,800 pe quin al in 2023-24. Al hough
yea - o-yea luc ua ions occu such as lowe p ices in 2019-20 (3,239) and 2020-21 (3,225) he o e all pa e n
e lec s s eady p ice in la ion. The highes seasonal a e age appea s in 2023-24 (3,700/q l), indica ing s ong
ma ke condi ions in he cu en yea . Howe e , when compa ed wi h ising p oduc ion cos s, hese p ice
inc eases emain insu icien o many mills, explaining pe sis en paymen delays o a me s. The da a also
show ha suga p ices a e highly sensi i e o policy decisions, expo egula ions, and p oduc ion cycles.
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
91
O e all, he g adual inc ease in ex-mill p ices does no ully ma ch inpu cos in la ion, con ibu ing o ongoing
inancial s ess wi hin he indus y.
Sou ce: ISMA
E hanol P oduc ion: Oppo uni y and Challenge:
U a P adesh p oduces o e 4,000 million Li e s o e hanol annually, making i one o India’s leading
con ibu o s o he coun y’s e hanol blending p og am. This g owing e hanol sec o o e s se e al key bene i s
o suga mills, including a c ucial sou ce o addi ional e enue, which helps o se losses om low suga p ices.
The income gene a ed h ough e hanol sales also assis s mills in clea ing cane a ea s, imp o ing hei inancial
s abili y and suppo ing imely paymen s o a me s. Mo eo e , U a P adesh e hanol ou pu plays an essen ial
ole in achie ing India’s na ional a ge o 20 Pe cen age. e hanol blending by 2025, educing dependence on
ossil uels and p omo ing cleane ene gy. Howe e , he e hanol ecosys em aces no able challenges. Delayed
go e nmen paymen s o e hanol signi ican ly dis up mill cash lows, while he absence o a uni o m e hanol
p icing policy c ea es unce ain y and a ec s long- e m planning. Addi ionally, many mills lack adequa e
s o age capaci y, limi ing hei abili y o scale up p oduc ion o handle luc ua ing supply and demand. These
cons ain s mus be add essed o he e hanol sec o o each i s ull po en ial in suppo ing he suga indus y’s
sus ainabili y.
Table Es ima ed E hanol P oduc ion Capaci y U a P adesh (Molasses Based) Du ing Esy 2023-24 (Million
Li es)
S a e
No. o Uni s
Annual Ins alled Capaci y
U a P adesh
60
2495
Sou ce: ISMA
The able shows ha U a P adesh has a signi ican e hanol p oduc ion capaci y, wi h 60 molasses-
based uni s p oducing 2,495 million li es yea ly in 2023-24. This makes U a P adesh one o India’s leading
e hanol manu ac u e s, p o iding an impo an addi ional income sou ce o suga mills and suppo i e he
na ional 20% e hanol blending a ge .
Majo Challenges in Coo dina ion:
Fa me s’ Challenges:
Fa me s in Wes e n U a P adesh ace mul iple challenges ha se e ely a ec hei inancial s abili y
and o e all p oduc i i y. The mos c i ical issue is delayed cane paymen s, which dis up household income and
limi a me s’ abili y o ein es in he nex c op cycle. O e he pas i e yea s, he cos o cul i a ion has isen
by 35-40 Pe cen age, d i en by highe p ices o e ilize s, labou , and diesel. Despi e hese ising cos s, a me s
ha e limi ed access o mechaniza ion, as small land holdings and high equipmen p ices make machine use
imp ac ical o mos . Wa e sca ci y u he adds o hei bu den, signi ican ly inc easing i iga ion expenses due
o declining g oundwa e le els. Addi ionally, a me s o en s uggle wi h low anspa ency in cane weigh and
quali y assessmen , leading o mis us be ween hem and mill au ho i ies. These challenges push a me s o
demand highe S a e Ad ised P ices (SAP) o co e hei cos s and ensu e p o i abili y. Howe e , mills
equen ly a gue ha such high SAP le els a e economically un iable, c ea ing a pe sis en con lic be ween
a me expec a ions and mill a o dabili y.
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
92
Mills’ Challenges:
Mills in Wes e n U a P adesh ace a se ies o s uc u al and inancial challenges ha make hei
ope a ions inc easingly di icul . One o he mos p essing issues is he high S a e Ad ised P ice (SAP), which
emains ixed a ele a ed le els e en when ma ke suga p ices a e low, c ea ing a se ious misma ch be ween
inpu cos s and e enue. Compounding his p oblem is he low suga eco e y amoun in he egion, which
limi s he amoun o suga ex ac ed om each onne o cane and di ec ly educes mill p o i abili y. Many mills
also su e om echnology obsolescence, wi h decades-old machine y leading o ine iciencies, highe uel
consume pi on, and equen b eakdowns. Financial bu dens a e u he agg a a ed by high-in e es loans and
ising ope a ional expenses, while delayed go e nmen subsidies dis up cash low a c i ical imes in he
c ushing season. Mo eo e , mills s uggle wi h labou sho ages, pa icula ly du ing peak ha es , which slows
down ope a ions and con ibu es o suc ose loss. Due o hese combined challenges, mills o en ope a e on
ex emely hin ma gins, and many un in o inancial losses, making i di icul o pay a me s on ime o in es
in mode niza ion.
Wo ke s’ Challenges:
Wo ke s in he suga indus y o Wes e n U a P adesh ace a ange o di icul ies ha e lec hei
ulne able posi ion wi hin he sec o . Mos o hem ind employmen o only 4-5 mon hs du ing he c ushing
season, lea ing hem wi hou income o s abili y o he es o he yea . This esul s in low job secu i y and long
pe iods o economic unce ain y. Wo king condi ions inside mills a e o en poo , wi h inadequa e en ila ion,
long hou s, and limi ed access o wel a e acili ies. Many wo ke s ecei e li le o no o mal aining, which
es ic s hei skill de elopmen and inc eases ope a ional ine iciencies. The na u e o he wo k also exposes
hem o a high isk o acciden s, pa icula ly a ound hea y machine y and du ing cane loading o unloading. The
si ua ion is u he wo sened by he absence o p ope sa e y equipmen , such as glo es, helme s, and p o ec i e
gea , lea ing wo ke s physically ulne able. Despi e being essen ial o mill ope a ions, hese wo ke s emain
one o he mos neglec ed g oups, ecei ing minimal bene i s, limi ed ecogni ion, and insu icien suppo om
bo h mill managemen and go e nmen agencies.
Go e nmen Policy Challenges:
Go e nmen policies play a signi ican ole in shaping he unc ioning o he suga indus y in Wes e n
U a P adesh, ye hey o en con ibu e o ins abili y due o hei inconsis en and poli ically in luenced na u e.
The S a e Ad ised P ice (SAP) is equen ly seen as poli ically mo i a ed, se highe o appease a me s du ing
elec ion cycles, e en when mills canno economically sus ain such p ices. Addi ionally, he delayed elease o
go e nmen subsidies dis up s mill cash lows and con ibu es o paymen backlogs. Policy unp edic abili y is
ano he majo issue, as expo bans o app o als change equen ly, making i di icul o mills o plan
p oduc ion and manage in en o ies. The e hanol blending policy, al hough p omising, s ill lacks ull cla i y on
p icing, p ocu emen imelines, and long- e m commi men s, c ea ing unce ain y o mills looking o in es in
expansion. Mo eo e , India lacks a alue s abiliza ion mechanism o suga , causing ex eme luc ua ions in
ma ke p ices and inancial s ess o mills. While he go e nmen a emp s o balance a me wel a e wi h
o e all indus y g ow h, he esul is o en o e egula ion, which limi s lexibili y, educes compe i i eness, and
unde mines long- e m sus ainabili y o he suga sec o .
Discussion:
Coo dina ion challenges s em om misaligned incen i es:
Fa me s wan highes SAP.
Mills wan low inpu cos and high eco e y.
Wo ke s seek s able jobs and be e wages.
Go e nmen ies o keep a me s poli ically sa is ied while also keeping mills ope a ional.
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
93
This C ea es a T iangle o Con lic s:
B eaking his cycle equi es s uc u al e o ms.
Findings:
Financial imbalance due o SAP is he oo cause o all majo dispu es.
Wes e n U a P adesh low eco e y a e educes compe i i eness.
Labo sho ages signi ican ly delay c ushing and educe suc ose con en .
G oundwa e deple ion h ea ens long- e m sus ainabili y.
Ou da ed echnology limi s p oduc i i y.
Fa me s and mills lack a anspa en communica ion sys em.
Go e nmen egula ions o en con adic ma ke eali ies.
Conclusion:
The suga indus y o Wes e n U a P adesh is a li eline o millions, ye i s sus ainabili y is unde
h ea due o pe sis en s uc u al challenges and poo coo dina ion among s akeholde s. Fa me s ace moun ing
dis ess due o delayed paymen s, ising inpu cos s, and wa e sca ci y. Mills su e inancial ins abili y due o
low eco e y a es, ou da ed machine y, and a igid p icing amewo k ha o en o ces hem o ope a e a
losses. Wo ke s s uggle wi h seasonal employmen , inadequa e wages, and a lack o wo ke wel a e sys ems.
Go e nmen agencies a emp o add ess hese issues h ough SAP, subsidies, and e hanol policies, bu
inconsis en o poli ically in luenced decisions equen ly c ea e u he unce ain y.
Fo he indus y o achie e long- e m iabili y, e o ms mus ocus on aligning incen i es, imp o ing
anspa ency, p omo ing mechaniza ion, encou aging sus ainable wa e use, and es ablishing a ma ke -linked
p icing sys em. S eng hening s akeholde communica ion, mode nizing mills, and enabling a me s o adop
high-yield and wa e -e icien a ie ies will be essen ial. The u u e o he suga indus y in Wes e n U a
P adesh depends on coo dina ed ac ion, policy cohe ence, and a shi owa d sus ainabili yd i en economic
p ac ices.
Re e ences:
1. Cha u edi, L. (2020). Coo dina ion Failu es in Suga Indus y Go e nance. Jou nal o Ru al
De elopmen S udies, 12(3), 45-58.
2. Chak abo y, S. (2020). Technological Challenges in Indian Suga Mills. Indian Jou nal o
Ag ibusiness, 18(2), 112-120.
3. Gup a, S. (2022). Poli ical Economy o S a e Ad ised P ice in U a P adesh. Economic A ai s
Re iew, 27(1), 78-89.
4. Jadha , V. (2021). Labo Dynamics and Seasonal Employmen in Suga cane Indus ies. Labou and
Socie y, 10(4), 134-149.
5. Khan, M., & Ve ma, A. (2020). Cane P icing and Paymen Delays in Wes e n U a P adesh. Jou nal o
Ag icul u al Policy, 15(2), 65-74.
6. Meh a, R. (2023). S akeholde Coo dina ion in India's Suga Sec o . Policy Pe spec i es, 7(1), 22-36.
7. Mis a, B. (2020). Wo ke Wel a e and Sa e y in Suga Mills. Indian Labou Jou nal, 61(3), 91-101.
High SAP
Mill losses
Paymen
delays
Fa me
p o es s
Go e nmen
p essu e
Mo e
egula ion
Lowe
e iciency
Eu opean Summi on In e disciplina y Resea ch and De elopmen - An In e na ional Resea ch Con e ence
Published By C ys al Pen Publica ion, Pe ambalu , Tamil Nadu, India - www.c ys alpen.in
ESIRD - 2025 P oceedings, Da e: No embe 30, 2025, ISBN Numbe : 978-93-49435-80-3
94
8. Nai , P., & Singh, A. (2020). Compa a i e S udy o Suga Reco e y Ra es in India. In e na ional Suga
Resea ch Jou nal, 14(2), 57-66.
9. Pandey, R. (2022). Clima e Va iabili y and Suga cane P oduc i i y in No h India. Jou nal o Clima e
and Ag icul u e, 9(3), 110-119.
10. Pa el, D. (2019). Ma ke Unce ain y and Suga Expo Policies. In e na ional T ade Re iew, 6(4), 201-
214.
11. Rao, K. (2017). Policy Implica ions o Suga P ice Con ols in India. Indian Economic Policy Jou nal,
11(1), 55-70.
12. Sha ma, P. (2019). Economics o Cane A ea s and Fa me Dis ess in U a P adesh. Ag icul u al
Economics Qua e ly, 33(2), 141-153.
13. Singh, R. (2018). Suga cane Economy o Wes e n U a P adesh. Jou nal o Ag icul u al De elopmen ,
25(4), 204-217.
14. Tiwa i, R., & Singh, M. (2019). G oundwa e Deple ion and Wa e Use in Suga cane Cul i a ion.
Wa e Resou ce S udies, 8(2), 88-99.
15. U a P adesh Suga cane Depa men . (2023). Annual Suga cane S a is ical Repo . Go e nmen o
U a P adesh.
