Govt finds way out of sugarcane impasse

Political Bureau

Posted: Saturday, Nov 21, 2009 at 2302 hrs IST
Updated: Saturday, Nov 21, 2009 at 2302 hrs IST


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New Delhi: Opposition parties tasted sweet victory on Friday as the government buckled under pressure to amend its sugarcane ordinance. It will bring forward a Bill that will allow states to fix a higher price for sugarcane than that fixed by the Centre without having to own up liability for the price difference.

Ending the impasse in Parliament, an all-party meeting convened by the government this afternoon agreed upon the formulation that top UPA managers arrived at last night ensuring that states would not end up with any additional financial burden if they decided on a state advisory price (SAP) that was higher than the Fair and Remunerative Price (FRP) for sugarcane arrived at by the Centre. As per the new amendment to be incorporated in the legislation that will be tabled in Parliament on Monday, the onus of paying the difference in price will now fall on the mill owners.

The decision was widely hailed by the Opposition as well as parties like the Trinamool Congress and DMK, who said their protests had finally ensured that farmers’ interests were protected. Led by parties like the RLD, thousands of farmers had converged on the capital yesterday to protest against the ordinance.

RLD chief Ajit Singh— who led the farmers’ agitation—said that their fight in the interest of farmers would still go on. “We are happy that the Centre has decided to delete the clause but our agitation will still be on against the state government and the mill owners for a higher price. The SAP of Rs 615-170 declared by the UP government is not acceptable to the farmers”, Singh said.

“This is a victory for farmers’ rights and strengthens the democratic process”, BJP’s deputy leader in the Lok Sabha Sushma Swaraj said and thanked the government for resolving the deadlock in 24 hours. DMK leader TR Baalu said the government’s decision was a vindication of their stand.

A statement issued by parliamentary affairs minister PK Bansal said the ordinance clause relating to the difference between SAP and FRP has given rise to certain misgivings. “It is proposed to delete the clause altogether. Consequently, if the state announces a SAP, it will be the responsibility of the sugar mills to pay the SAP to farmers,” the statement said. “UPA wishes to reaffirm that it has always been guided by the principles, that the interest of the farmers is paramount”, it added.

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