Sugarcane growers seek higher cane price in state

The sugarcane farmers in Karnataka are up in arms against the state government for delaying fixing the cane price for the present sugar season (October 2010 to September 2011). The government has not taken a stand on fixing the cane price on behalf of the sugar mills.

The farmers have threatened to go on a statewide protest march if the government failed to intervene and mediate with sugar mills to fix the cane price. The farmers are demanding a minimum of Rs2,200 per tonne as cane price for the present year, which is 58 per cent more than the fair and remunerative price (FRP) announced by the Centre for the year.

The South Indian Sugar Mills Association (SISMA), the apex industry body, said the government has no right to fix the cane price on behalf of the sugar mills as there is no mechanism of the State Advisory Price (SAP) in the state. According to SISMA officials, the sugar mills have already announced their cane price.

For the present sugar season, the mills in northwest Karnataka have announced the first advance of Rs1,750-1,800, about 29 per cent more than the FRP. Mills in the rest of the state have announced a Rs1,800 per tonne ex-factory, which is 29 per cent more than the FRP. “The price is normally fixed based on the prevailing price of sugar in the open market. For the present year, the average price of sugar is Rs24-25 per kg compared to Rs34-36 per kg last year,” a SISMA official said.

Kurubur Shanthkumar, president, Karnataka Sugarcane Growers Association has demanded that the Karnataka government should follow the example of Uttar Pradesh, Tamil Nadu and Maharashtra, and announce the cane price.

“The farmers in many parts of north Karnataka are already in distress due to the non-payment of arrears for the last sugar season. Most of the mills have not paid Rs200 as the balance amount to farmers. The mills should pay Rs2,200 per tonne as the first advance and pay the final price depending on the recovery at the end of the year,” he said.

Shanthkumar also demanded that the state government take an early decision on announcing the State Advisory Price (SAP) mechanism. “The farmers will stage a massive agitation against the government in Bangalore if the government did not take a decision on introducing the SAP Act by November 30,” he warned.

In January this year, chief minister B S Yeddyurappa had constituted a committee under the chairmanship of S A Patil to study the model of SAP system in other states and give recommendations to the government. However, the committee has met only once till now and not done much work in this direction, Shanthkumar said.

Presently, there is no SAP system in Karnataka and mills fix the cane price arbitrarily without consulting the government and farmers. However, the price is usually higher than fair and remunerative price (FRP) announced by the Centre. The SAP system is currently followed in the states of Punjab, Haryana, Gujarat, Uttar Pradesh and Tamil Nadu.

Shanthkumar said if the state brings out SAP, farmers’ interests would be protected, as there will be a provision for fixing cane price scientifically.