UP sugarcane farmers have rejected the Centre’s order asking the state governments to pay the farmers the difference if they fix the price of sugarcane in excess of the “fair and remunerative price”, which is going to be introduced in place of the statutory minimum price (SMP) shortly.

Every year, several states announce an increase in the price of sugarcane, over and above that fixed by the Centre, and it is paid by sugar mills. The Centre’s order will transfer the extra financial burden to state governments. Farmers’ organisations fear that, given the condition of the states’ finances, they cannot bear this burden and would stop the practice of announcing a higher price.

The farmers’ organisations have dubbed the Sugarcane (Control) Amendment Order 2009, issued under the Essential Commodities Act 1955, by the Union Ministry of Consumer Affairs, Food and Public Distribution on October 22, as “most unfair and anti-farmer” and said it was meant to benefit private sugar mills.

The order says if any authority or the state government fixes a price above the FRP fixed by the Central government, it will have to pay to sugarcane growers the additional amount.

UP’s Cane Commissioner Sudhir Bowde said, “We are examining the issue. Let the Centre announce the FRP. Only then we will comment on this issue.”

UP is one of the states which fix its own state advisory price (SAP) every year. Others are Haryana, Punjab, Bihar, and Uttarakhand.

In UP, against the SMP of Rs 108 per quintal for 2009-10, the SAP is between Rs 162.50 and 170 for different verities of sugarcane. In Punjab and Haryana, SAPs are Rs 200 and Rs 180 per quintal, respectively.

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