With both Houses adopting the sugarcane regulation Bill, farmers in the State have served the government an ultimatum of 15 days to withdraw it.
“We will launch a Statewide agitation if the government fails to withdraw the Bill,” Karnataka Rajya Raitha Sangha president Kodihalli Chandrashekhar said. His demand assumes significance as not even a year has passed since the government witnessed an unrest among sugarcane farmers after factories refused to pay the full State Advisory Price. The unrest reached boiling point when an agitating farmer committed suicide.
The Bill has come at a time when sugarcane farmers are still complaining of the factories not paying the SAP of Rs. 2,500 a tonne.
The main contention of the farmers regarding the Bill is that it seeks to consider the Fair and Remunerative Price (FRP) announced by the Centre as the ‘ex-gate’ price instead of the ‘ex-field’ (procurement at the field).
Mr. Chandrashekhar said that the ex-gate price mechanism is not in the interests of farmers as they would have to not only invest on transporting the sugarcane crop to factories but also suffer losses if the sugar recovery percentage dips owing to a delay between harvesting and crushing.
According to him, the sugar recovery percentage, which plays a crucial role in determining sugarcane price, would come down by two to three percentage if the produce is not crushed in the factory within four hours of harvesting.
Mr. Chandrashekhar said that not all farmers had the ability to transport their produce to sugar factories within four hours of harvesting and described the ex-gate price mechanism as “anti-farmer”.
He pointed out that sugar factories in north India were giving Rs. 2,900 to Rs. 3,010 for a tonne of sugarcane. In Karnataka, factories are supposed to pay Rs. 2,500 a tonne which includes a saving of Rs. 100 a tonne accrued on account of the government’s waiver of various taxes.
Sugarcane farmers have charged the government with bowing to pressure from sugar factories’ lobby while pointing out that 19 prominent politicians, including Ministers and MLAs, have set up sugar factories in the State.
