What is SSS’s main objection to the state’s decision in the sugar sector?

 

The government has decided against allowing farmers to sell their cane outside the state. A government notification issued September 13–2023 restricts farmers from supplying sugarcane to other states. Which means farmers will have to sell cane to sugar mills in the state irrespective of lower rates. The decision is not only autocratic but also violates a fundamental right of farmers.

 

Especially at a time when the Centre talks about ‘one nation, one market’. It goes against the principle of the Centre’s economic and market reforms.

 

What is SSS planning to do?

 

We will launch an agitation ‘dhol wajwa, sarkarla jagwa’ (beat drums, awaken government). On October 2, farmers will protest by beating the dhol (drums) outside every sugar mill in Maharashtra. This is our first step of the protest. We want to first awaken the government, to come to terms with the reality and unrest within the cane grower community. Farmers armed with dhols (huge traditional drums) will gather outside some 197 sugar mills across Maharashtra to protest. The government says it’s a precautionary measure as it expects a lower yield due to a dry August.

 

Festive offer

Imposing curbs on farmers in a free market economy is not the solution. It is a dictatorship. Farmers have the right to sell their cane to whomever they want. They have the right to explore the market and encash their produce at the best price. When the Centre promotes ‘one nation, one market’, it means there should be no boundaries. And this is allowed in all sectors.

 

The question is – why are poor farmers being deprived of basic rights with such restrictions? Despite a stunted growth of cane due to a long dry spell this monsoon, the overall yield is an estimated 950–970 lakh tonne this season (2023-24). Last season it was at 1,050 lakh tonne.

 

Which state seeks cane from Maharashtra farmers?

 

They supply cane to sugar mills along borders in neighbouring Karnataka and Gujarat. On an average 20 per cent cane is supplied outside the state. Farmers explore sugar mills outside the state when they get better prices. This year Karnataka too is reeling under drought. So, farmers will naturally explore profitable opportunities wherever possible.

 

What about safeguarding the interests of the sugar mills?

 

Even with a shortfall of 80–100 lakh tonnes of cane, there is no threat to the state’s sugar mills. There is enough sugarcane to sustain the entire crashing season beginning October 2023. Moreover, most sugar mills have enhanced their crushing capacity through modernisation and new technology. As a result, their cane intake has also increased.

 

The problem is that sugar mills are influencing the government to bring in policies that serve their own interest which is detrimental to farmers. Instead of banning exports, why are sugar mills not paying higher rates? If they match prices offered by other states, farmers will prefer domestic mills.

 

The Centre has fixed the Fair and Remunerative Price for sugarcane in 2023-24 at Rs 315 per quintal for a basic recovery rate of 10.25 per cent?

 

Yes. But it does not help farmers to even recover their investment on cane cultivation. With a steep hike in fertiliser prices, investment has shot up manifold. As a result, a sizable number of farmers have not been able to utilise fertilisers as mandated. Besides, climatic challenges have compounded the crisis for cane cultivators.

 

Has higher investment not deterred farmers from cultivating cane, and reduced area under cultivation?

 

Sugar cane is essentially the mainstay of farmers in western and northern Maharashtra and parts of Marathwada. It is a water intensive crop. The area under cane went from 10 lakh hectares to 14 lakh hectares in the last few years due to good monsoon. Adequate access to water prompted farmers in Marathwada region to switch to cane. But now, the area under cane cultivation is unlikely to increase. The drought-like situation looming before us and pricier fertilisers will affect cane farmers.

 

What is the solution?

 

Farmers should get higher FRP. It should be above Rs 400 per quintal. To help sugar mills cope with challenges, the government can give them incentives, too, such as higher price for ethanol which is currently at Rs 60.29 per litre. Another possibility is to raise the export quota of sugar to enable profits to sugar mills.