The central government has announced a hike in the fair and remunerative price (FRP) of sugarcane by five rupees per quintal (100 kg) while dismissing any immediate need to increase the price of sugar in the market. The updated price for the FRP of sugarcane for 2021-22 marketing year (October-September) will be Rs 290 per quintal as against the earlier price of Rs 285 per quintal.
Union Minister for Food and Consumer Affairs Piyush Goyal, after convening a meeting of Cabinet Committee on Economic Affairs (CCEA), informed the press that the sugarcane farmers whose recovery rate is above 10 per cent will be entitled to the updated FRP while those whose recovery rate is below 9.5 per cent will also get a FRP of Rs 275.50 per quintal.
Sugar recovery rate refers to the weight of sugar produced after processing of sugarcane in proportion to the weight of the sugarcane stock.
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“It is seen that due to the introduction of better technologies, the recovery of sugar from cane is increasing across India. Also, the export of sugar was record high last year — about 7,000,000 tonnes,” Goyal said today in his interaction with the press in New Delhi. “The government has also taken up measures to ensure that the farmers get their payments on time and it has also been taken care of that the consumers are not burdened by the FRP price hike,” the minister added.
The FRP of Rs 290 per quintal at a recovery rate of 10 per cent is higher by 87 per cent over production cost, Goyal said, adding that sugar cane farming is more profitable than other crops.
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The decision is expected to benefit around 50 million sugarcane farmers and their dependents, as well as about half a million of workers employed in sugar mills and related economic activities, claims the central government.
Last fiscal year 2020-21, the Union government had raised the FRP by Rs 10 per quintal.
Farmers demand FRP to be proportional to fuel price hike
Meanwhile, reeling under high fuel prices, cane farmers demand that the raise in FRP should be in proportion to the fuel prices.
Kulveer Singh, a 56-year-old sugarcane farmer from Tisotra village in Bijnor district of Uttar Pradesh told Gaon Connection that an increase of five rupees per quintal will hardly make a difference to his income.
“In the last one year, the price of diesel has increased by more than thirty five rupees. After the Uttar Pradesh government’s MSP (minimum selling price), we get almost Rs 325 per quintal of sugarcane. In order to get a decent profit, we should be getting at least four hundred rupees per quintal,” Singh told Gaon Connection.
Dharmendra Malik, the media incharge of Muzaffarnagar-based farmers’ organisation Bhartiya Kisan Union, agreed with the farmer. He told Gaon Connection that the rationale with which the government has announced the hike is hard to infer.
“I don’t know with what rationale is the government announcing this FRP hike of five rupees per quintal. Diesel prices are soaring to a record high. The input costs are increasing with every passing day and this hike in FRP would hardly make a dent in the condition of sugarcane farmers,” Malik told Gaon Connection.
Punjab hikes prices for sugarcane
Yesterday, on August 24, Punjab Chief Minister Amarinder Singh announced a price hike of Rs 35 per quintal of sugarcane, increasing the state advisory price (SAP) to Rs 360 per 100 kilograms which Congress party claims is the highest for any state in India.
The chief minister’s announcement came in the wake of a five-day long agitation by sugarcane farmers in Punjab which ended after his announcement.
The protesting farmers had blocked the Jalandhar-Phagwara stretch of the Delhi-Amritsar national highway near Dhanowali village of Jalandhar district as well as railway tracks near Jalandhar, which affected the movement of several trains.
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Uttar Pradesh govt’s action on sugar mills for stalling payments to farmers
On August 3, the Sugar Industry & Cane Development Department issued a press statement which announced that strict action shall be taken against the sugar mills that have put the farmers’ payments on hold.
It mentioned that recovery certificates have been issued against the defaulting sugar mills in the state and the concerned district administration shall be able to recover the payment of the farmers as arrears on the mill’s land revenue.
It added that out of 120 operational sugar mills in the state, 36 mills have completed 100 per cent payment to the farmers, 29 mills have paid out 80 per cent amount, and 19 mills have paid 90 per cent of the farmers’ dues.
Meanwhile, today, Uttar Pradesh Chief Minister Yogi Adityanath reportedly met with a group of sugarcane farmers at his residence in Lucknow and informed them that efforts are underway to increase the SAP for sugarcane.
“Our government has cleared record sugarcane dues dating back to 2010. 82 percent of dues of the present season have also been cleared and all dues will be cleared before the next season. But we are also trying that there is some increase in the procurement price of sugarcane. Let us talk to all stakeholders first,” CM Adityanath was quoted.
“Our farmers should not worry or not be misled by anyone. Prime Minister Narendra Modi is there and your government is there in UP. We will take a firm decision and work for you,” he added.
