Govt may table Bill to replace cane ordinance next week

The government hopes to table the Bill to replace the sugarcane ordinance on prices in Parliament next week, Food and Agriculture Minister Sharad Pawar said.

Pawar, who had today convened a meeting to evolve a consensus on the ordinance issued to replace the Statutory Minimum Price with a Fair and Remunerative Price (FRP), said “on every issue, there can’t be a consensus. However, discussions are held to sort out the issues raised by the leaders.”

He said “I would convene a meeting of MPs of southern states, who have raised objections to the demand for restoration of section 5A.”

In today’s meeting, some leaders raised the issue of restoration of Section 5A of the Sugarcane Control Order—that provides for price for sugarcane purchased by mills in each season. The Section, which deals with profit sharing between the millers and the sugarcane growers, was repealed in the ordinance.

CPI leader Gurudas Dasgupta, who was also present in the meeting, said his party supported the system of FRP as farmers would henceforth get instant payment while in the earlier system, there was deferred payment. However, he said the government must balance the price between sugarcane and sugar as consumers suffer when sugar prices soar.

BJP leader Sushma Swaraj, who was present at the meeting of the leaders of political parties today, said the government apprised them of the impact of the restoration of Section 5A and she would discuss the matter with her party leaders L K Advani and Arun Jaitley before taking a stand.

Rashtriya Lok Dal (RLD) leader Ajit Singh said the government would have to pay Rs 14,000 crore to the millers, due on account of levy price, if section 5A is restored.

Asked when the mills in UP would start crushing, Singh said, “They have to pay about Rs 200 a quintal for sugarcane in the next 10-15 days, which will satisfy the farmers.”

But it is between the mills and the cane committees to decide the cane price, he added.

Singh also said UP mills have announced a cane price of Rs 190-195 a quintal yesterday, while the State Advised Price in UP is Rs 165-170 a quintal.

Other leaders present at the meeting were Trinamool Congress’ Sudip Bandopadhyaya, RJD’ Raghubans Prasad Singh, CPI leader D Raja and SP’s Reoti Raman Singh.