Parliament today passed a bill that introduces new sugarcane price regime, after government allayed concerns of Opposition that the states will not be required to pay the difference between the Central and the State Advised Price to farmers.
The Rajya Sabha passed the Essential Commodities (Amendment and Validation) Bill which had already been approved by the Lok Sabha last week. Instead of Statutory Minimum Price (SMP) the Central benchmark would be the Fair and Remunerative Price (FRP).
The Bill replaces the October 21 Ordinance which had led to protests among sugarcane farmers and political parties against obligation sought to be put on the state governments if they chose to pay higher price than FRP.
"There were strong reactions in northern India and Tamil Nadu. We said uniform price throughout the country would not be acceptable. The government accepted the demand and the state governments are free to decide SAP without paying the differential with FRP," Food and Agriculture Minister Sharad Pawar said, winding up the debate on the bill.
The Opposition including BJP, SP, BSP and RLD had stalled Parliament proceedings on the first two days of the winter session on November 19 and 20, protesting the Sugarcane Control Order. The RLD and Bharatiya Kisan Union also held a big rally in the capital against the measure.
Even the DMK, a key ally of the UPA, had opposed the order.