Govt may raise cane SMP: Pawar

Government is planning to increase statutory minimum price (SMP) of cane substantially for 2009-10 (October-September), Agriculture Minister Sharad Pawar said On Tuesday.

“There is a cane shortage. I think there is a case to increase prices of cane. Farmers will see a substantial increase in sugar cane prices for the next season,” Pawar said here while addressing a farmers’ meet.

Commission of Agricultural Costs and Prices has recommended increasing cane price for the next sugar season starting October 1 to Rs 125 a quintal, up from Rs 81.18 in the current season.

Separately, a senior government official said Cabinet Committee on Economic Affairs (CCEA) is likely to decide on the cane SMP for 2009-10 as early as On Tuesday.

The Cabinet and CCEA is scheduled to meet later On Tuesday.

Pawar also said government has declared a record minimum support price for wheat for two consecutive years, which led to bumper wheat procurement last year.

“This year too, procurement is expected to be very good as the crop output is almost the same as last year’s and procurement price is at a record high,” the minister said.

Government had set the minimum support price for wheat at Rs 1,000 a quintal for 2008, and has said it will buy wheat from farmers at Rs 1,080 a quintal in the new procurement season that begins April.

The minister said of the record wheat procurement of over 22 million tonnes last year, government has been able to sell only around 40 per cent due to ample availability.

“Over 60 per cent of the wheat we bought last year from farmers is still with the FCI (Food Corporation of India). Once wheat procurement begins this year, storage of food grain will become a big challenge for FCI,” he said.

The minister said after two years of relying on wheat imports to meet local requirements, India had become self-sufficient in food grains in 2008.

“Now we need to focus on improving production and productivity of oilseeds and pulses,” the minister said.