DMK, a key ally of the ruling UPA, on Thursday came out against the Centre’s new sugarcane pricing policy which has angered several opposition parties.

The Sugarcane Control (Amendment) Order 2009 Ordinance has changed the sugarcane pricing policy, fixing a uniform Fair and Remunerative Price (FRP) which would put the burden on states if they choose to pay more than FRP to farmers.

“If there is a structured and regulated discussion on sugarcane issue, we will participate in it and vent our feelings because the Central government has not taken the state governments into confidence,” DMK Parliamentary Party Leader T R Baalu told PTI.

Mr. Baalu and Telecom Minister A Raja met Finance Minister Pranab Mukherjee immediately after the Lok Sabha was adjourned on the issue on the opening day of the Winter Session on Thursday.

The DMK leaders were believed to have conveyed their party’s reservation on the issue.

In the past, several states used to announce State Advisory Price (SAP), over and above the Statutory Minimum Price (SMP) of the Centre. Importantly the differential was borne by the mills. The new system would discourage the states to announce their SAPs as they have to bear the burden.

Mr. Baalu said his party is opposed to concept of state bearing the difference between the FRP and SAP. “We are opposed to it and the state governments should be taken into confidence“.

Almost all opposition parties including BJP, RJD, SP and AIADMK have opposed the new sugarcane policy.