Farmer body seeks higher SMP for sugarcane

The Karnataka Sugarcane Growers Association (KSGA) has urged the Centre to announce a hike in statutory minimum price (SMP) for sugarcane with effect from the current sugar year (October 2008-September 2009). The association, which met Montek Singh Ahluwalia, deputy chairman, Planning Commission, in New Delhi last week, has requested the government to treat sugarcane on a par with agriculture crops like wheat and paddy, and announce an increase in the sugarcane prices.

According to Kurubur Shantkumar, president, KSGA, the Centre has raised the SMP for wheat from Rs 640 per quintal to Rs 1,000 per quintal for the current crop year, a rise of 37 per cent over the previous year. Similarly, the SMP for paddy has gone up by 37 per cent to Rs 890 per quintal for the current year. Whereas the SMP for sugarcane has been maintained at Rs 811.18 per tonne for the current year also.

“When the government has shown mercy on the growers of other crops, why should they neglect sugarcane growers. The cost of cultivating sugarcane has gone up many times over the last couple of years. The government should take into consideration the report submitted by the Commission for Agricultural Cost and Price (CACP) which has recommended an SMP of Rs 1,550 per tonne (if the recovery of sugar is 9 per cent per tonne of cane) and announce a rise in the SMP for sugarcane,” he said.

He said KSGA had led a delegation of 100 sugarcane growers from Karnataka to Delhi and had a meeting with Ahluwalia to apprise him of the difficulties faced by sugarcane growers.

“We have presented our case to Ahluwalia and he was surprised to know that there has been no rise in SMP for sugarcane. He has assured us that he would prepare a detailed report on the plight of sugarcane farmers and submit a report to the prime minister Manmohan Singh shortly,” Shantkumar said.

On this occasion, several farmer associations such as Karnataka Prantha Raitha Sangha (KPRS), All India Kisan Sangh (AIKS) and KSGA have threatened to launch an agitation in January if the government failed to increase the sugarcane prices before December 31.

KSGA also demanded that sugar factories should pay sugar arrears amounting to Rs 240 crore in the state. During the President’s rule in the state, Governor Rameshwar Thakur had announced a bail-out package and granted an additional Rs 160 per tonne to farmers last year.

While many sugar mills in the state have paid Rs 100 per tonne as additional cane price, many others are yet to implement the order, he said.

During their meeting with Ahluwalia, various farmers’ associations have demanded the Centre to direct sugar mills to distribute 60 per cent of their net profit among sugarcane growers.

As per the Sugarcane Control Order, 1966, sugar factories are bound to share a part of their profits (L profit) with farmers.

In addition to this, the farmers’ bodies have urged the Centre to appoint a separate technical advisor to the prime minister for agriculture. Presently, in the prime minister’s office, there are technical advisors in every department except agriculture.