News Analysis India

Tag: sugarcane

  • Union Cabinet approves increase in Fair and Remunerative Price on sugarcane to Rs 290 per quintal

    By ANI

    NEW DELHI: The Union Cabinet approved an increase in the Fair and Remunerative Price (FRP) on sugarcane to Rs 290 per quintal based on a 10 per cent recovery, informed Union Consumer Affairs and Food and Public Distribution Minister Piyush Goyal on Wednesday.

    Briefing the media on Cabinet decisions here today, Goyal said, “The Union Cabinet has decided that the Fair and Remunerative Price (FRP) which is paid on sugarcane will be increased to Rs 290 per quintal which will be based on a 10 per cent recovery. When the recovery increases beyond 10 per cent, then on every point 1 per cent rise, additional Rs 2.90 is paid per quintal. Even if a farmer has less than 9.5 per cent recovery, their Fair and Remunerative Price (FRP) will be Rs 275 per quintal.”

    The Centre had in August 2020 increased the FRP by Rs 10, bringing the amount to Rs 285 per quintal. In 2019-2020, the government had fixed Sugarcane FRP at Rs 275 per quintal.

    He further said, “Many farmers across the country have increased their recovery by using modern technology, implementing new practices on a large scale. We have been observing that the recovery in our country is improving.”

    “Also last year, export was also at a record high. Our country has entered contracts of exporting 70 lakh tonnes of sugarcane, out of which 55 lakh tonnes has already been exported and the remaining 15 lakh tonnes is in the pipeline,” added the Union Minister.

    With the amendment of the Sugarcane (Control) Order, 1966 on October 22, 2009, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the ‘Fair and Remunerative Price (FRP)’ of sugarcane for 2009-10 and subsequent sugar seasons.

    Under the FRP system, the farmers are not required to wait till the end of the season or for any announcement of the profits by sugar mills or the Government. The new system also assures margins on account of profit and risk to farmers, irrespective of the fact whether sugar mills generate profit or not and is not dependent on the performance of any individual sugar mill, according to the Ministry of Consumer Affairs, Food and Public Distribution

    In order to ensure that higher sugar recoveries are adequately rewarded and considering variations amongst sugar mills, the FRP is linked to a basic recovery rate of sugar, with a premium payable to farmers for higher recoveries of sugar from sugarcane. 

  • Punjab farmers call off stir as CM Amarinder Singh assures hike in sugarcane prices

    By PTI

    CHANDIGARH: Farmers seeking a hike in sugarcane prices called off their agitation after Punjab Chief Minister Amarinder Singh assured them of Rs 360 per quintal for it on Tuesday.

    The CM announced a hike of Rs 35 per quintal in the state assured price (SAP) of sugarcane after a meeting with farmer leaders here.

    Farmers had blocked a national highway and rail tracks in Jalandhar, saying the recent hike announced by the state government was inadequate as their production cost had spiraled considerably.

    Their demand had also got the backing of state Congress chief Navjot Singh Sidhu, who demanded better prices for Punjab farmers and had said the rates should be increased immediately.

    The farmers’ stir had entered the fifth day on Tuesday.

    According to an official spokesperson, agreeing to the demand for a hike in cane prices, the CM said Punjab’s fiscal situation had prevented an adequate increase in the state advised price for the past three to four years.

    The CM said farmers were not to blame for the problem, which was caused by Punjab’s poor finances, the spokesperson added.

    According to the official, the CM said he was always with farmers and wanted to do his best for their welfare but the state’s fiscal crisis had prevented him from increasing SAP earlier.

    Balancing the needs of farmers with those of the cooperative and private sugar mill owners was tough, given the prevailing fiscal situation, said the CM.

    After a meeting with the chief minister, farmer leader Manjit Singh Rai told reporters that the CM agreed to increase cane prices.

    He said they were told that their pending arrears will be paid in 15 days.

    Rai said they have also told farmers in Jalandhar to lift the blockade.

    Farmer leader Balbir Singh Rajewal declared the increase in cane prices by the state government as a “big victory” for farmers.

    In the meeting, Ministers Sukhjinder Singh Randhawa, Balbir Singh Sidhu, along with MPs Preneet Kaur and Partap Singh Bajwa, MLAs Rana Gurjit Singh, Dr Raj Kumar Verka, Fatehjang Singh Bajwa and Navtej Singh Cheema were present.

    The farmer union leaders, representing the Sanjha Kisan Morcha that has been spearheading the sugarcane farmers’ agitation for the past several days, thanked the chief minister for addressing their problems.

    The state government had earlier revised sugarcane rates to Rs 325 for the early variety, Rs 315 for mid-variety and Rs 310 per quintal for the late maturing variety.

  • SC seeks replies of Centre, 11 states on PIL for payment of sugarcane farmers’ dues

    By PTI

    NEW DELHI: The Supreme Court on Wednesday sought responses from the Centre and the eleven sugarcane-producing states including Uttar Pradesh and Maharashtra on the PIL filed by a former parliamentarian seeking implementation of a mechanism providing payment of dues of farmers within 14 days from supply of sugarcane to the mills.

    A bench comprising Chief Justice NV Ramana and Jusitce Surya Kant took note of the submissions of senior advocate Anand Grover, appearing for Maharashtra’s former Lok Sabha MP Raju Anna Shetti, that the sugarcane suppliers be paid their dues within 14 days of the supply across the country as envisaged by an order of the Allahabad High Court.

    “Issue notice. List it after three weeks,” the bench said after Grover pointed out cases of states which have been defaulting in big way in ensuring the payment to the farmers.

    The senior lawyer alleged that the sugar mills have indulged in “diversion of funds” and are not making payment to the farmers and hence their stock of sugar should be attached for realisation of dues of agriculturists.

    As per the UP Sugarcane Supply Act, it is mandatory to pay the cane growers their dues within 14 days and interest on the amount if not paid dues within the stipulated time period. Besides the Centre, Uttar Pradesh and Maharashtra, the top court also issued notices to Punjab, Uttarakhand, Haryana, Gujarat, Bihar, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu.

    It also sought responses from four sugarcane purchasing firms and they are Bajaj Hindustan Sugar Limited, Indian Sugarmills Association, Cane Agro Energy (India) Limited and Indian Sucrose Ltd.

    Shetti, in his PIL, has sought the setting up of a mechanism for payment of price of sugarcane produce to the cane farmers “in order to avoid accumulation of such dues and preventing the farmers from falling in the vicious cycle when a mill is declared sick and their dues of sugarcane produce remained unpaid during the process of resolution or liquidation of sugar mill leading to deterioration of condition of farmers”.

    The former lawmaker, who is also the president of local political outfit ‘Swabhimani Paksha’, is joined by four sugarcane producing agriculturists as co-petitioners whose cane dues are not paid by sugar mills or factories since 2015-16 in Maharashtra.

    “We have inter-alia raised the plea in the petition that the State Govt./Central Govt. failed to discharge their statutory duties for payment of outstanding dues of the cane growers by the Mill /owner under respective state legislations and also violation of fundamental rights of the sugar cane growers and sellers under Article 21 of the Constitution,” Shetti said in a statement.

    As per Control Order, the payment to sugarcane suppliers shall be made within 14 days from the date of supply of sugarcane and the authorities should take strict actions against the defaulting sugar mills for violation of the provisions, the plea said.

    It said that further the defaulting sugar mills ought to be prosecuted under the provisions of Essentials Commodities Act for violation of provisions under Sugar (Control) Order.

  • Rs 10,000 subsidy for Chhattisgarh farmers to grow crops other than paddy

    By PTI
    RAIPUR: Farmers in Chhattisgarh will get an input subsidy of Rs 10,000 per acre for cultivating some crops identified by the government other than paddy from the Kharif season 2021-22, an official said on Thursday.

    The decision was taken in a meeting chaired by Chief Minister Bhupesh Baghel here on Wednesday in a bid to encourage cultivation of crops other than paddy in Chhattisgarh, which known as the ‘rice bowl’ of central India because of extensive cultivation of rice in the state.

    The CM decided to expand the scope of Rajiv Gandhi Kisan Nyay Yojana and to cover all the major Kharif crops like maize, soyabean, sugarcane, kodo-kutki, pulses along with paddy under it from the next season, the public relations department official said.

    Under the scheme, farmers will be provided an input subsidy of Rs 9,000 per acre for paddy cultivation in the Kharif season 2020-21 and on all major Kharif crops, including paddy, from the next season, he said.

    In the Kharif season 2019-20, the state government provided an input support of Rs 10,000 per acre to farmers for paddy cultivation.

    “If the farmers, who had sown paddy in 2020-21, cultivate kodo-kutki, sugarcane, maize, soybean, pulses, oilseeds, aromatic paddy, other fortified varieties of paddy or carry out tree plantations in place of paddy in the same land, then they would be provided Rs 10,000 per acre as input subsidy, instead of Rs 9,000 per acre,” he said.

    Farmers who will plant trees in the fields will be given an input subsidy of Rs 10,000 per year for the next three years, he added.

    The subsidy amounts will be directly transferred to the accounts of beneficiaries, he added.

    State Agriculture Minister Ravindra Choubey and other senior officials were present in the meeting.

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  • Modi government will give subsidy on sugar exports, gift to 5 crore sugarcane farmers

    In the midst of the ongoing agitation on the issue of agricultural law, the Modi cabinet has taken a big decision on Wednesday. The government has decided to export 6 million tonnes of sugar, the proceeds from this, its subsidy will be directly deposited in the account of 5 crore farmers. After the cabinet meeting, Union Minister Prakash Javadekar, Ravi Shankar Prasad informed about the decisions by holding a press conference.

    The Union Minister said that this year the government has decided to give subsidy on the export of 6 million tonnes of sugar. Subsidies will be directly in farmers’ account, it will cost 3500 crores. Apart from this, income of Rs 18000 crore will also be given to the farmers.

    The Union Minister said that 5 crore farmers will benefit from this, 5 lakh laborers will benefit. According to the minister, within a week, farmers will get subsidy of up to Rs 5000 crore. 60 lakh tonnes of sugar will be exported at the rate of 6 thousand rupees per ton.

    According to Prakash Javadekar, sugar production will be 310 lakh tonnes this year, the consumption of the country is 260 lakh tonnes. Due to the low sugar prices, farmers and industry are in trouble, to overcome this, it has been decided to export 6 million tonnes of sugar and subsidize the exports.