| Farm cost panel to sort out anomaly in sugar prices | | | / Business Standard March 07,2002 | | | |
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| Farm Cost Panel To Sort Out Anomaly In Sugar Prices | |
| / BUSINESS STANDARD Mar 07, 2002, 00:00 | | | | | |
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To determine the salient features of the new sugarcane pricing policy, the Commission for Agricultural Costs and Prices has invited state governments, experts from the Planning Commission and universities, and government officials for a two-day conclave starting March 13.
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"The conclave will determine the correct price that sugarcane farmers should get for their produce. Currently, there is a vast difference between the state-advised prices (SAPs) and the statutory minimum price (SMP) fixed by the Centre. The commission hopes to reduce the anomaly," officials told Business Standard.
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"Every year there is a big difference in the prices fixed by the Centre and the states for sugarcane. And usually the SAP is much higher than the SMP, leading to delay in payments from factories. Although it is not allowed, states still continue to fix their own prices. Therefore, we have sought the CACP’s advice on prices to end the anomaly," the sources added.
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The commission has been asked to determine the price in tune with the recommendations of the Mahajan Committee on sugar. The committee had suggested setting up of a statutory body in line with the CACP to fix the prices.
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The main victims of the wide difference between the SAP and the SMP are the sugar factories. Due to higher prices, they have to bear the extra burden and thus there are delays in the payment of cane arrears to the farmers.
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The unrealistically high cane prices set by the states disturbed the sugar-sugarcane economy of the country, the sources said.
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"Since the minimum support price for other crops is fixed by the Centre, sugarcane should not be an exception,” they added.
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