Maya writes to PM on cane pricing

Written by Deepa Jainani | Lucknow | Updated: Oct 31 2009, 05:36am hrs
In the larger interests of cane growers, Uttar Pradesh chief minister Mayawati has shot off a letter to Prime Minister Manmohan Singh to do a rethink on the arrangement wherein the difference between the fair and remunerative price (FRP) and the state advisory price (SAP) should be paid by the state government.

Requesting him to keep the current system of payment of sugarcane prices to the farmers based of state advisory price (SAP) intact, Mayawati has said that the states right to fix SAP has already been recognised by a decision of the Supreme Court and stated that despite this, the Centre had not taken the state government into confidence before making the amendments related to FRP. The Government of India, by amending the Essential Commodities Act and Sugar Cane Control Order 1966 for fixing remunerative prices of sugar cane, had indirectly ended the rights of the state government for fixing SAP, she said and added that since the sugar mills directly purchase sugar cane from the cane cooperative societies/cane growers, therefore there is no question of the state government bearing the difference between the FRP and SAP.