The government will still set the fair remunerative price (FRP), the minimum mill-owners have to pay sugarcane farmers, and the states are free to set their own prices.
Under mounting pressure from a united opposition as well as farmers, the Centre has decided to reverse its sugarcane policy.
It will still set the fair remunerative price (FRP), the minimum mill-owners have to pay sugarcane farmers, and the states are free to set their own prices (state-advised prices or Saps), but if a Sap is higher than FRP, the difference will now have to be paid by mill-owners, rather than the state.
The government held detailed discussions with allies and leaders of opposition parties, after both Houses of parliament were adjourned for the second successive day on Friday over the issue, to arrive at the decision. Thousands of farmers had demonstrated in Delhi on Thursday, bringing the capital to a virtual standstill.
Parliamentary affairs minister Pawan Bansal said the government had decided to delete the clause it had introduced through an ordinance in October, whereby the difference between Saps and FRP was to be paid by the respective state governments. Some states objected, saying they could not afford it.
“This provision gave rise to certain misgivings, to remove which the government has now decided to delete this clause,” Bansal said. He also made it clear that henceforth, if a state announces a Sap, “it will be the responsibility of sugar mills to pay it [the difference] to farmers”.
The opposition claimed credit for the government climbdown and called off its agitation both inside and outside parliament. “Parliament will function normally from Monday,” Sushma Swaraj, BJP deputy leader in the Lok Sabha, said.
Rashtriya Lok Dal chief Ajit Singh, who was instrumental in mobilising farmers, endorsed her view. “The government has seen reason and agreed to accept the just demand of farmers,” he said.
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