New sugarcane price gets House seal

A new pricing regime for sugarcane was cleared by both houses of parliament even as significant changes were made to the original ordinance after farmers in Uttar Pradesh went on protest.

The Rajya Sabha passed the Essential Commodities (Amendment and Validation) Bill which had already been approved by the Lok Sabha last week. Instead of Statutory Minimum Price (SMP), the Central benchmark would be the Fair and Remunerative Price (FRP). The new bill also included an old provision wherein mill owners price the sugarcane, factoring in some of the profits in cane processing.

The Bill replaces the October 21 Ordinance which led sugarcane farmers and political parties to oppose the obligation sought to be put on state governments if they chose to pay higher price than FRP.

 “There were strong reactions in northern India and Tamil Nadu. We said uniform price throughout the country would not be acceptable. The government accepted the demand and the state governments are free to decide SAP without paying the differential with FRP,” agriculture minister Sharad Pawar said, winding up the debate on the bill.

The opposition, including BJP, SP, BSP and RLD had stalled parliament on the first two days of the winter session on November 19 and 20, to protest the Sugarcane Control Order. The RLD and Bharatiya Kisan Union also held a big rally in the capital against the measure. Even the DMK, a key ally of the UPA, had opposed
the order.