Bill on sugarcane pricing passed by Lok Sabha

A bill to clear legal ambiguity over minimum price of sugarcane and replace it with Fair and Remunerative Price (FRP) mechanism beyond September 2009 was passed by Lok Sabha today.

FRP is the minimum price that sugarcane farmers are legally guaranteed. However, the sugar mills are free to offer any price above the FRP as deemed fit by them.

Replying to the debate, minister of state for agriculture KV Thomas said the bill aims to clear legal ambiguity which may arise over FRP. "It is a simple amendment to clear legal ambiguity," he said.

The amendment was to remove doubts regarding FRP, manufacturing cost of sugar and reasonable return on the capital employed.

The bill stated, "These did not include the price paid or payable under any order or any enactment of any state government and any price agreed to between the producer and the grower or a sugarcane growers' cooperative society."

This provision had remained effective till September 30, 2009, and the current amendment sought to extend it beyond that date.

FRP for 2010-11 crop season has been raised to Rs139.12 per quintal from Rs129.84 per quintal last year.

Earlier, members cutting across party lines supported the amendment but sought the Centre's indulgence in protecting the interest of the sugarcane growers.

Adir Ranjan Chaudhary (Congress), Rajendra Agarwal (BJP), Shailendra Kumar (SP) and Ramshankar Rajbhar (BSP) took part in the debate.