The Central Government’s decision to increase the Fair and Remunerative Price (FRP) of sugarcane for the sugar season (SS) 2022-23 (October-September) by Rs 15 per quintal is “a joke on the farmers of the country”. This is what VM Singh says on behalf of the Rashtriya Kisan Mazdoor Sangathan (RKMS) in a press release dated August 5.
RKMS says that the FRP is linked to the recovery of sugar and this year, while increasing the rate by Rs 15, the basic recovery rate has also been increased to 10.25 per cent from 10 per cent. If this is taken into consideration, the actual increase is only Rs 7.75 per quintal, not Rs 15 per quintal. The loss to the farmers on account of this Rs 7.25 per quintal would amount to over Rs 2600 crores on the expected production of sugarcane at 360 million tonnes.
The calculations have been explained by RKMS in detail. In SS 2021-22, the FRP of Rs 290 was linked to a recovery rate of 10 per cent only. There was a premium of Rs 2.90 for every 0.1 per cent increase in recovery. Thus, the farmers got Rs 297.25 per quintal for a recovery of 10.25 per cent. At Rs 305 for SS 2022-23, this would translate into an actual increase of only Rs 7.75 per quintal.
If the FRP of Rs 305 per quintal for SS 2022-23 had also been linked to 10 per cent recovery, then the farmers would have got Rs 312.50 per quintal for 10.25 per cent.
Calling the government’s decision “totally anti-farmer”, RKMS has demanded that the government should reconsider the fixation of the FRP for SS 2022-23.
Going by the detailed calculations, the increase is not 5.1 per cent, as suggested by the government, but under 2.5 per cent. This is a “pittance”, says RKMS, against the inflation rate of about 7 per cent and more so because of the input inflation of about 25 to 30 per cent.
The governments invariably give an advantage to the sugar mill owners by indulging in number games, says RKMS. That is why RKMS has, says the press release, for the past 27-28 years been opposing the Statutory Minimum Price (SMP) and now FRP in Uttar Pradesh (UP) and other States that declare State Advised Price (SAP). When the sugar mill owners and associations in the year 1996 challenged the fixation of SAP in the High Court, the latter quashed it. However, due to the intervention of RKMS, the Constitution Bench of the Supreme Court upheld the validity of the SAP. Therefore, states like UP, Uttarakhand, Punjab, Haryana, Tamil Nadu, Jharkhand, Bihar and Madhya Pradesh continue to declare SAP for sugarcane, which was about Rs 350 per quintal last year. The FRP fixed by the Central Government is not applicable to the farmers of these States.
RKMS also says that the statement of the Government is incorrect insofar as the input cost of Rs 162 is concerned. The farmers had sown cane when the diesel prices touched over Rs 100 per litre. In areas that are witnessing drought, the expense of irrigation and additional expense of pesticides and insecticides incurred would increase the input cost by leaps and bounds. A few years ago, the Sugarcane Minister had informed the UP Assembly that as per the government-owned research centres, the input cost of sugarcane was Rs 294 per quintal. Therefore, on 16 August 2022, RKMS is going to send a representation to the Chief Minister through the SDM in every Tehsil to fix the SAP at Rs 450 per quintal for the year 2022-23.
Finally, RKMS requests the Prime Minister that since one-sixth of the nation is involved in the production of sugarcane — over 5 crore sugarcane families are engaged — a sugarcane department may be constituted to mitigate the hardships of the cane farmers. While most States have a department and ministry for sugarcane or sugar Industries, unfortunately, there is no such department in the Central Government. That is the reason, says RKMS, the plight of the sugarcane farmers escapes the interest and consideration of the government, especially fixation of reasonable rate, timely payment or payment of interest in case of delay in payment.