Even as farmers in Maharashtra and Uttar Pradesh are gearing up to agitate against generators traumatic well timed payment of Fair and Remunerative Price (FRP) and State Advised Price (SAP), sugar millers claimed that better FRP and SAP ends in growing cane fee charge arrears. However, farmers’ leaders refuse to accept the argument.

Sugarcane farmers in Maharashtra have demanded that sugar mills must pay FRP in one go.
According to the Indian Sugar Mill Association (ISMA), one of the essential reasons for cane price payment arrears is high FRP set by using the Centre. Millers stated that they’re facing a hard monetary state of affairs, as there is no correlation between the sales generated via mills and the cost incurred in the manufacturing of sugar.

The FRP is based totally at the value of manufacturing of sugarcane and an detail of confident profit as to cowl the hazard of sugarcane farmers. According to ISMA, the mark up above the price of manufacturing of sugarcane, at an all-India common foundation, is as high as 100 per cent over the price of manufacturing sugarcane.

Millers claimed the Minimum Selling Price (MSP) has been revised most effective once lower back in February, 2019 to ₹31/kg. The authorities has expanded the FRP for sugarcane from October, 2020 but not the MSP. The Centre increased the FRP via ₹10 to ₹285 in keeping with quintal for a fundamental recuperation of 10 consistent with cent for the contemporary season.

NITI Aayog, together with various States, have asked for a hike within the MSP to ₹33-36 per kilo, to facilitate timely payment to farmers.
Dual pricing

Some States inclusive of Uttar Pradesh declare SAP for sugarcane considering the value of manufacturing and productivity stages. The SAP is commonly better than the FRP.

Millers said that twin pricing is distorting sugar financial system and leading to cane fee arrears. High SAPs without any linkage with the output price is viable, said enterprise players, including that the machine of SAP ought to be removed and if States announce SAPs they must shoulder the rate differential.

“Sugar generators insist on low FRP and abolition of SAP bringing up low sugar charges and occasional demand but markets aren’t stagnant. No sugar mill has shared its earnings with farmers when sugar prices are at the height,” said former MP Raju Shetti who’s also the President of Swabhimani Shetkari Sanghatana.
Farmers’ stand

Shetti delivered that mills are painting the wrong image of sugarcane farmers getting bumper blessings out of cultivation. He insisted that the manufacturing cost incurred by farmers is much extra as compared to the FRP and SAP. He added that generators dilly-dally to pay one-time FRP to farmers despite making money.