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Harish Damodaran

New Delhi, Oct. 27 Cane growers in Uttar Pradesh are planning to launch an agitation from Thursday, demanding higher prices for their crop to be crushed by sugar mills in the 2009-10 season (October-September).

The move could further delay the start of crushing operations for the new season and, in turn, put pressure on already constrained sugar supplies in the market. Moreover, it could affect sowing of wheat to the extent farmers take their own time in vacating their cane fields.

Mr V.M. Singh’s Kisan Mazdoor Sangathan and Mr Mahendra Singh Tikait’s Bhartiya Kisan Union are among the farmers’ organisations planning to hold a joint ‘Mahapanchayat’ at Bareilly on October 29.

“We are trying to get other groups (who have announced separate programmes on the same day) also on board. The Bareilly Mahapanchayat will present a united voice of all cane farmers,” said Mr Singh.

The proposed agitation comes even as the Centre is expected to soon declare its “Fair and Remunerative Price” (FRP) for the 2009-10 cane crop. “A decision is likely when the Cabinet Committee on Economic Affairs (CCEA) meets on Thursday. Indications are that the FRP will be fixed at around Rs 135 a quintal,” according to sources.

This would be lower than the Rs 165-170 a quintal State Advised Price (SAP) of the Uttar Pradesh Government. “Neither the SAP nor the so-called FRP is acceptable to us. Our demand is for Rs 280 a quintal and we will ensure no cane is supplied unless mills pay us this rate. We will also defy any moves by the authorities to prevent operation of kolhus (jaggery units),” Mr Singh told Business Line.

Mills, on their part, are adopting a wait-and-watch approach as of now. “The way things are, we don’t see crushing taking off anytime before mid-November,” said a leading miller. But the mills have already decided to mention only the Centre’s FRP as the price payable on their parchis (weighment slips against cane indents) issued to growers.

“We may actually pay more, depending on the prevailing cane supply conditions and the need to run our plants at optimal capacity. But on the parchis (slip), we will only mention the FRP of, say Rs 135. In the event of our having to pay Rs 200 or so, the difference we will meet separately in the name of cane development incentive, special bonus, etc. On these, there can be no legal claims upon us,” the miller added.

Earlier, on October 22, the Centre had issued an amendment, exempting mills from paying any price other than the Centre’s FRP. State Governments that have announced SAPs higher than the FRP will be required now to pay the difference from their own budgets, with the mills’ liability restricted to just the FRP.

“There is no question of declaring the SAP on our parchis. If we do that, the SAP becomes the agreed price, which then relieves the State Government of any responsibility for making the payment. That would put us on a legally weak wicket,” the miller added.

More Stories on : Sugar | Agricultural Policy | Other States

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