Both the Centre and State government must ensure that the fair and remunerative price (FRP) for sugarcane announced by the former was implemented by all sugar mills in the country, said Swabhimani Shetkari Sanghatana president Raju Shetti, Lok Sabha member from Hatkanagale in Kolhapur district of Maharashtra.

Speaking to presspersons here on Sunday, he said many sugar mills were not inclined even to pay the FRP, let alone giving good price to growers.

Also, there was inordinate delay in payment of the sugarcane bill in violation of the Sugarcane (Control) Order, 1966. If a mill delays payment beyond 14 days in violation of this Order, the government must take action as per the law.

The centre has announced Rs. 2,300 per ton of sugarcane linked to basic sugar recovery rate of 9.5 per cent and Rs. 242 per tonne for one percentage point above the basic level for the crushing year 2015-16.

Dual pricing

Replying to questions, Mr. Shetti said the Centre must evolve dual pricing mechanism for domestic and commercial sugar, which would go a long way in improving financial health of sugar mills and the growers. Hardly 22 per cent of the total sugar produced in the country was consumed in domestic sector and rest was used by the commercial sector such as chemical, pharmaceutical, hotel, and food and beverage manufacturers.

The government should either fix higher prices for commercial sugar or levy additional surcharge, he said. He was not forthcoming clearly when asked on farmers’ demand for share in the income from the sugarcane byproducts and said it was for the government to look into various aspects of sugarcane economics and protect interests of growers as well.