Move follows protests by farmers against proposal to de-regulate sugarcane
With farmer organisations protesting against implementation of Rangarajan Committee report on de-regulating sugarcane, the Centre has authorised state governments to fix prices for the produce.
"The government has delegated powers related to sugarcane to the state governments. Decisions regarding sugarcane pricing and cane reservation are being taken by the state governments," Ministry of Consumer Affairs, Food and Public Distribution said in a letter to Rashtriya Kisan Mazdoor Sangahthan (RKMS).
RKMS Convenor V M Singh, who presented the copy of the Ministry's letter in a press conference here, welcomed the decision, saying it is a step forward for sugarcane farmers who would have incurred huge losses if the government had accepted the Rangarajan Committee report.
"Four crore farmers will be relieved with the move. The Central government has finally decided that states will decide price of sugarcane as of now. It is a step forward for sugarcane farmers," he said.
The farmers' body had organised a protest in the capital on December 4 against the Rangarajan Committee report on sugarcane sector. Former Army Chief General V K Singh had also attended the protest.
On the future course of action for RKMS, if the government decides to reconsider Rangarajan Committee's recommendations, Singh said, "We would request them to take our point of view in consideration also. But if that does not happen then farmers will be forced to sit on an indefinite protest here.
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The Rangarajan formula would have increased the price to $8.4 per mBtu against the current $4.2 per mBtu