Chavan govt mulls cane price regulator

Maharashtra CM, senior ministers believe it's a practical way to avoid the annual confrontation between growers and factory owners

The Maharashtra government, to avoid confrontation between sugar units and farmers’ organisations, has proposed a regulatory commission to determine the price of cane.

The suggestion got wide acceptance at a meeting chaired by Chief Minister Prithviraj Chavan on Tuesday night. He and senior ministers discussed the issues before the sector, in the wake of demands by farmers’ bodies for higher pay.

State Sugar Commissioner Vijaykumar Singhal told Business Standard: “It will be on the lines of the electricity regulatory commission. The proposal is at a preliminary state.

The government will enact a law for the establishment of a regulator.’’

He noted the committee headed by C Rangarajan, the Prime Minister’s economic advisory council head, had also recommended a regulator. Preliminary discussion with farmers bodies in this regard had been held, said Singhal.

The Rangarajan panel had suggested of the total income earned by a factory, 70 per cent should go to the farmers.

In Maharashtra, the sector and farmers’ bodies disagree on the division of expenses on cane cutting and transportation.

A senior minister, present at the meeting, said the government would soon have to take a decision on a regulatory set-up, since an agitation for a higher cane price had become an annual pattern.

“Due to the agitation in the current season, factories from the high-recovery zone comprising Satara, Sangli and Kolhapur have yet to start crushing. Farmers’ organisations are demanding a price of Rs 3,000-3,500 a tonne, not possible, specially when  the ex-mill sugar price is Rs 2,650 a quintal and the fair and remunerative price by the Centre Rs 2,100 a tonne,’’ the minister said.

He hoped the proposed commission would be able to determine a price ahead of crushing, to avoid confrontation.