Uttar Pradesh Chief Minister, Mayawati on Friday rejected the fair and remunerative price (FRP) of cane announced by the Central government. She has urged the Prime Minister, Manmohan Singh that the prevailing system of paying the procurement price in accordance with the State advised price (SAP) should not be disturbed.
The Centre had on Thursday declared the FRP of cane at Rs. 129 per quintal.
Stating that the system of price difference between the FRP and the SAP to be paid by the State Government should be reconsidered, the Uttar Pradesh Chief Minister on Friday wrote a letter to the Prime Minister.
Ms. Mayawati took strong exception of the FRP being declared by the Centre without taking the State government into confidence. She said the move amounted to ignoring the interests of 40 lakh cane farmers of Uttar Pradesh.
Ms. Mayawati said the Supreme Court had upheld the State’s right to declare SAP of sugarcane. She criticised the Central Government’s decision to amend the Essential Commodities Act and the Sugarcane Control Order, 1966. Since the sugarcane is sold and bought by the growers and mill owners respectively in terms with the price announced by the State, the government is in no position to pay the price difference between the FRP and SAP, Ms. Mayawati said. The Chief Minister reminded Dr. Singh that the system of SAP has prevailed since the 1973-74 cane crushing season in Uttar Pradesh.
The Uttar Pradesh Chief Minister there has been a constant decline in the area under sugarcane cultivation, cane and sugar production.