Business Standard

Maharashtra parties battle for higher cane payments

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Sanjay Jog Mumbai

Farmers’ associations angry with first advance payments.

Politics over the amount paid to sugarcane growers as the first advance for the season has taken centre stage in Maharahstra.

Various farmers’ organisations affiliated to political parties have stepped up their agitation by resorting to road demonstrations and blockades, demanding Rs 2,200 a tonne.

On Tuesday, a group of protesters sat on a dharna in front of Agriculture Minister Sharad Pawar’s house in Baramati, while another group organised a sit-in near two sugar cooperative factories associated with state Cooperation Minister Harshvardhan Patil in Pune district.

The Raj Thackeray-led Maharashtra Navnirman Sena (MNS) staged a rasta roko in Vidarbha demanding Rs 2,200 a tonne as the first advance. The police had to move in to disperse the protesters.

 

Farmers organisations and MNS have argued that over 134 sugar mills that are participating in this year’s crushing season are in a position to pay the Rs 2,200 a tonne fair remunerative price (FRP) and an additional amount based on domestic and global market conditions for sugar and its byproducts.

The Centre had announced an FRP of Rs 1,391.80 a tonne for 9.5 per cent recovery and an additional Rs 14.60 per percentage point of recovery above 9.5 per cent.

However, the mills have expressed inability to meet the demands saying they are financially not on a strong ground. In sugarcane-rich Kolhapur, Sangli and Satara, some mills have agreed to pay up to Rs 1,900 a tonne. They have assured cane growers that the final payment will be more than this.

Industry sources told Business Standard: “Maharashtra sugar mills are paying much more than the FRP. Last year, the average FRP was Rs 1,575 a tonne and the average price paid by mills was Rs 2,500 a tonne. Going by the same rule and considering the drop in sugar prices, mills are expected to pay at least Rs 500 a tonne more than the FRP. This will amount to Rs 2,200.”

Industry sources said farmers’ organisations launched a similar agitation in September in Pune district to demand a rise in prices of sugar and the minimum wages paid to harvesting and transportation labourers.

Hundreds of trucks were stranded as the organisation warned that the mills would not be allowed to sell below Rs 3,000 a quintal, or Rs 30 a kg, in the retail market. Sugar mills owned by farmers themselves have been paying Rs 1,000 a tonne more than the statutory minimum price in the state.

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First Published: Dec 16 2010 | 12:46 AM IST

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